Daily Report 211116
Domestically, DCE soybean species are stable. Oil and meal strength is not obvious. Fundamental side, domestic soybean actuals partial districts increased RMB 20-40/ton. Most districts price are stable. Since farmers are unwilling to sell and recent transport capacity is tight, purchasing and sales activities reduced. Most districts trading are not active. Filtered grain purchasing price is focus on RMB 3560-3640/ton. Coastal oil plant quotation is RMB 3200-3300/ton. As for operation, soybean species is at low position seasonal. Hold long position for Soybean Futures species in middle-term.
Last week copper market trading was weak. Last week three main exchanges inventory increased 7472 tons to 467000 tons. SHEX increased 21987 tons to 135000 tons, LME decreased 17075 tons to 258000 tons and COMEX increased 2560 tons to 75000 tons. Last week actuals market rolled back after rally. Last Tuesday turns discount after premium. Friday discount $11. Technically, copper price is strong since late October, which is mostly influenced by market emotion and capital. Copper fundamental side can’t promote copper price.
Last week PP futures rolled back. Upstream side, till Friday night, Korea FOB average price is $775.5/ton. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 8600-10100/ton, RMB 8500-8750/ton and RMB 8750-9000/ton, respectively. As for operation, now average system turns downward; MACH green column lengthened, and recent is expected to fluctuate and continue downward tendency.
Last week Nickel trading was weak and resisted at 5- day average line. Friday dropped a lot. Last week two exchanges inventory increased 462 tons to 471000 tons. SHEX inventory decreased 1002 tons to 105000 tons. LME inventory increased 1464 tons to 366000 tons. LME actuals last week maintained at around discount $45. Friday discount slightly narrowed $0.25 to discount $44.75. Technically, Nickel price rolled back after the influence of non-ferrous market. Thinking about the bolster effect of fundamental side, before the Philippines supply problem is clear, Nickel price will still be bolstered by fundamental side. As for operation recommend observation.
                                                                                     Dong LV (Investment Certificate NO. TZ008452)