Daily Report 111016

Nature Rubber
Yesterday Shanghai rubber increased with high volume. US actuals price raised a lot. Till actuals trading time: domestic spots price is 1630-1660(+50); domestic cargo price is 1450-1500(+50); US RSS spots price is 1640-1670(+40); US RSS cargo price is 1650-1690(+50); Singapore cargo price is 1530-1540(+100); Thai cargo price 1590-1640(+110); mixed rubber price is 12200-12300(+600). Overall, during holidays overseas section futures and actuals increased. Domestic futures catch up increase tendency, and will stay strong in short term.
Monday copper market meets bolster, and copper price continued increase. LME closed up 1.13% and domestic increased 1.04%. From the dominant factor, Russia said it is ready to freeze or even cut production to promote international oil prices rose. Yesterday, the US crude oil rose 2.93%, Brent crude rose 2.27%, which are refreshing a new high during the year. From the copper market, LME stocks yesterday reduced 4625 tons to 351,000 tons. LME spot premium narrowed 0.5 US dollars to paste 19.25 US dollars. On the supply side, Vedanta said its copper production in Zambia was up sequentially in the second quarter, as recovery was boosted. From a technical point of view, the recent strong performance of copper, but with the rebound in copper prices, the resistance will gradually appear; we are waiting for the end of copper rebounded signs.
Domestically, DCE soybean strong oil and weak meal tendency continued. Although overseas section report will release, but trade just began after National Days holiday, market is stable. Domestic soybean price is stable, with the increased of landing volume, farmers are urgent to sell grains. But market trading is weak. Purchasing and selling mindset is under test. Purchasing price is RMB 3520-3640/ton, because of the low quality and low protein. High quality district of Heihe soybean quality is worse than last year, and purchasing price is around RMB 3700/ton. As for operation, US section report is near of release. DCE market should be cautious. Hold buying oil selling meal arbitrage position.
                                                                                                   Dong LV (Investment Certificate NO. TZ008452)