Daily Report 141016

Soybean
Domestically, soybean No. 1 contract continued drop. New grain and low quality caused price weaken. Northeast China district soybean price is stable. Filtered grain purchase price is RMB 3500-3700/ton. Purchasing and selling are under observation. Since other province soybean market is unsalable, traders are lack enthusiasm to purchase. 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, individual places actual price decreased RMB 10-20/ton. Coastal oil plant quotation is RMB 3150-3250. Market price is still strong. Downstream purchase is normal. As for operation, hold buying oil selling meal arbitrage position.
 
Copper
Thursday copper market dropped. LME dropped 1.93%. LME inventory decreased 1700 tons to 346000 tons yesterday. LME actuals discount narrowed $2.25 to discount $20.5. Supply side, Capstone the third quarter copper output is 32000 tons, and largely increased 44.7%. This company’s output largely increase since the second quarter. Technically, copper price dropped with increasing volume. Find short opportunity when price is high.
 
PP
Yesterday PP futures market opened high and dropped; opened at 7694 and closed at 7527, and trading volume increased 94372 lots to 360000 lots. Holding volume decreased 24846 lots to 675000 lots. Intraday main quoted prices for wires of north China, east China and south China markets are RMB8050-8150/ton, RMB 8150-8300/ton and RMB 8300-8500/ton, respectively. As for operation, now average lines system twisted, and MACD red column shortened, upward motion is not strong. Recent expect fluctuation.
                                                                                                              
                                                                                                     Dong LV (Investment Certificate NO. TZ008452)