Daily Report 281016

Domestically, Soybean No.1 increasing tendency slowed, since price is near cost district. Soybean oil slightly rolled back. But soybean meal continued rally. Cash side, South China domestic soybean price rolled back. With the market observation emotion increase, outbound volume decreased. Northeast China soybean price is stable. Soybean meal side, cash price increased RMB 40-70/ton. Costal oil plant quotation is RMB 3290-3380/ton. As for operation, long for Soybean Futures species. Soybean No.1 contract focus on stress line around 3900-3950. Keep long position for soybean meal futures.
Thursday copper market was strong. Copper price upward broke middle line of fluctuation range within the year. LME inventory yesterday decreased 4775 tons to 331000 tons. LME physical discount enlarged $1.25 to discount $8.5. Supply side, First Quantum third quarter copper output increased 32.76% Y/Y to 142700 tons, which was less than expected 146000 tons. Third quarter copper production cost is $0.97/pound, and lower than expected $1.17/pound. Technically, we wait for the signal for rally end.
Yesterday PP futures opened low and fluctuated; opened at 8182 and closed at 8099, and trading volume decreased 62132 lots to 265000 lots. Holding volume decreased 16428 lots to 669000 lots. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 8250-8350/ton, RMB 8250-8500/ton and RMB 8550-8800/ton, respectively. As for operation, now average system is for long. MACD upward expanded, which is strong tendency.
                                                                                                  Dong LV (Investment Certificate NO. TZ008452)