Daily Report 131216
Domestically, DCE night section fluctuated. Soybean No.1 contract fluctuated at high position. Soybean meal actuals price increased RMB 50-80/ton. Coastal oil plant quotation is RMB 3460-3550/ton. With soybean bonded increase, factory soybean meal inventories will gradually increase, but under the circumstances of feed plants and farmers and traders replenishment, the inventory growth will remain flat. 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.
Monday copper market was weak; copper price opened flat and dropped, closed with drop of 1.2%. LME inventory yesterday increased 28000 tons to 242000 tons. LME discount enlarged $13 to discount $17. LME inventory is under the tendency of drop since the end of this September, and till December 9, accumulated inventory decrease is 166000 tons. Overall, the fundamentals of the copper market has indeed become stronger than before, but does not support the copper out of the bull market, taking into account close to the Fed meeting on interest rates, market risk increases; propose prudent operation.
Monday Nickel market continued fluctuation at high position, and reached the upper board of fluctuation range since November. LME inventory yesterday decreased 102 tons to 369000 tons. LME actuals discount yesterday enlarged $0.75 to discount $48.75. Overall, 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)