Daily Report 131016

Domestically, Soybean No.1 contract dropped for three continuous days, reflects the affect of new grain and low quality. Domestic soybean actuals differentiates; high protein soybean with high price and low quantity, and low quality soybean with low quality and difficult to sell. Soybean meal side, actuals market is strong. Downstream purchasing is normal. As for operation, hold buying oil selling meal arbitrage position.
Wednesday copper market upward motion weakened, and copper price slightly dropped. LME inventory yesterday dropped 1500 tons to 348000 tons. LME actuals discount enlarged $2.25 to discount $22.75. Although LME inventory decreased since 30 September, LME inventory still up to 348000 tons, which is higher than this year’s high position and same time last year. Inventory stress was put on copper price. Supply side, Wednesday one worker died during the progress of transport of Cozami of Capstone, and caused miner operation stopped. The expectation output of Cozamin is 18000 tons. Technically, copper price is under adjustment; we are waiting for the end of copper rebounded signs.

Yesterday PP futures market continued fluctuation; opened at 7633 and closed at 7674, and trading volume decreased 78322 lots to 266000 lots. Holding volume increased 13660 lots to 700000 lots. Intraday main quoted prices for wires of north China, east China and south China markets are RMB8100-8200/ton, RMB 8200-8350/ton and RMB 8550/ton, respectively. As for operation, now average lines system twisted, and MACD red column lengthened, which is upward tendency. Recent expect strong tendency.
                                                                                              Dong LV (Investment Certificate NO. TZ008452)