Daily Report 051216
Domestically, DCE soybean No.1 contract strongly increased, but soybean actuals is flat, and not have influenced by futures market. Filtered grain purchasing price is mainly maintained RMB3600-3700/ton. Short term actuals price is expected to maintain increase tendency. As for operation, soybean No.1 contract price is more than warehouse cost, and upward space is not much. Soybean meal maintain long at roll back opportunity.
Last week copper market was weak. Copper price rushed to $6045.5 then dropped. Last week three main exchanges inventory decreased 5956 tons to 450000 tons. SHEX inventory decreased 8700 tons to 135000 tons. LME inventory increased 800 tons to 237000 tons. COMEX inventory increased 1944 tons to 78000 tons. LME actuals discount last week maintained narrow tendency. Last Friday was discount $2. Overall, the fundamentals of the copper market indeed become stronger than before, but does not support the copper out of the bull market, copper prices by the early market sentiment and funds to promote a larger component, with the current market sentiment gradually return to calm and financial Exit, copper prices are gradually return to fundamentals, short-term concern about the impact of the Italian referendum.
Last week Nickel market was bolstered at 5-weeks average, and nickel price is still strong. Two main exchanges inventory decreased 2216 tons to 471000 tons. SHEX decreased 1322 tons to 104000 tons. LME inventory decreased 894 tons to 367000 tons. LME actuals discount last week average was discount $51.55. Last Friday slightly narrowed 894 tons to 367000 tons. Overall, although the macro environment uncertainty still exists, nickel prices are still fundamentally dominated, because the upstream supply problem is still not resolved, nickel prices will continue to be supported below.
                                                                                                                     Dong LV (Investment Certificate NO. TZ008452)