Daily Report 011116

Soybean
Domestically, soybean No.1 contract rolled back near warehouse receipt cost. Oil and meal strength is not obvious. Oil against meal ratio is around 2.3:1. Cash side, Northeast soybean cash market purchasing and sell are still weak. Needs are still weak. Soybean meal cash dropped RMB 40-60/ton. Recent coastal oil plant main quotation maintains RMB 3240-3320/ton. As for operation, long for Soybean Futures species.
 
Copper
Monday copper price rushed to $4878, and then rally motion weakened. Macquarie analyst claimed at LME week that copper market supply adequacy decreased. The main reasons are mineral quality decreased and recent months Chile mineral has the tendency for production suspension. Recently Chile attention to environment increased, and the influence to supply can’t be ignored. Mexico August copper output increased 6.7% Y/Y to 44513 tons. Technically, we wait for the signal for rally end.
 
PP
Yesterday PP futures limit up; opened at 8370 and closed at 8733, and trading volume increased 127000 lots to 591000 lots. Holding volume decreased 38946 lots to 679000 lots. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 8300-8350/ton, RMB 8600-8750/ton and RMB 8650-8950/ton, respectively. As for operation, now average system is for long. MACD upward expanded, which is strong tendency.
                                                                                                              
                                                                                                             Dong LV (Investment Certificate NO. TZ008452)