Daily Report 271216
Soybean
Domestically, DCE soybean is stable, and market waits for US market tendency. Actuals side, Northeast district actuals price is still stable and strong. Product districts purchasing price is RMB 3800-3900/ton. High protein is RMB 4100/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. Soybean meal actuals price slightly decreased. Coastal oil plant price decreased RMB 20-40/ton. Coastal oil plant quotation is normally RMB 3420-3560/ton. As for operation, focus on No.1 soybean contract delivery.
 
Nature Rubber
Yesterday Shanghai rubber dropped with increased position, cash side: domestic spots price is 1870-1900(-60); domestic cargo price is 1890-1910(-70); US RSS spots price is 2180-2200(-50); US RSS cargo price is 2180-2200(-50); Singapore cargo price is 1950-1960(-50); Thai cargo price 1960-1980(-60); mixed rubber price is 15800-16100(-700). Overall, rumors that high-level moderately lowered economic growth target, risk asset allocation preferences decline; Shanghai rubber prices will follow the market and decline in short-term trading. Recommend short-term trade.
 
Macro Economy
On the domestic front, Chen Zhenggao, Minister of Housing and Urban Construction of China, said that in 2017, every effort should be made to control the real estate industry so as to ensure a steady and healthy development of the real estate market. China Development and Reform Commission and the Securities and Futures Commission jointly announced that the launch of PPP project asset securitization, in order to activate the PPP project inventory assets, improve the PPP project asset liquidity.
                                                                                                                  Dong LV (Investment Certificate NO. TZ008452)