Daily Report 141216
Domestically, DCE soybean No.1 contract remains at high positon. Soybean meal is affected by high operating rate, and supply tense situation is released. Actuals side, Northeast China district soybean purchasing price is between RMB 3600-3760/ton. Futures soybean now purchasing price is RMB 3720/ton, which is same with inventory purchasing price. Coastal oil plant quotation is RMB 3460-3550/ton. 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.
Tuesday copper market was weak, and copper price bolstered at 5-days average line. The main reason is expected Fed interest hike in December and LME inventory increase. LME inventory yesterday continued largely increased 17000 tons to 258000 tons. LME actuals discount narrowed $4.5 to discount $12.5. 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.
Tuesday Nickel continued high position fluctuation. Nickel price is cautious near average line compact district. LME inventory yesterday decreased 720000 tons to 369000 tons. LME actuals discount yesterday enlarged $4.25 to discount $52. 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)