Daily Report 261216
Soybean
Domestically, DCE soybean still waits for January contract delivery. Oil against soybean meal appears weak tendency. Domestic commodity is still weak, and it impacts soybean products. Actuals side, Northeast districts actuals market price is stable and strong. Purchasing price is RMB 3800-3900/ton. Base level unfiltered grain purchasing price went upward. Most districts base level purchasing price increased to RMB 3640-3700/ton, which increases market purchasing difficulty. Market is mixed with long and short elements, short term Northeast soybean actuals price stale. Soybean meal actuals price s stable and strong. Coastal oil plant quotation is normally RMB 3460-3560/ton. As for operation, focus on No.1 soybean contract delivery.
 
Macro Economy
On the domestic front, China's president Xi Jinping did not insist on a 6.5% economic growth target, fearing a rise in liabilities and uncertainties in the international environment after Trump's election to the US presidency. Monetary policy worries in 2017, at least the first quarter of monetary policy has the probability of tightening this year.
 
Stock Index
 Last week, the index weakened in the low position, the concept of reform of state-owned enterprises maintain a strong trend. The bond rallied after drop, panic ease.
News: 1: the SFC sternly warned the assets management industry: to advise those who violate the law to stop immediately, and surrender to the public security organs. 2: mixed ownership reform is an important breakthrough in the reform of state-owned enterprises, the military industry is also expected in 2017 to take substantial steps. China Shipbuilding Industry Group is expected to become a pilot of mixed ownership reform.
                                                                                                                Dong LV (Investment Certificate NO. TZ008452)