Daily Report 030117
Last week nickel market was strong and largely increased. Lase Friday LME inventory decreased 24 tons to 382000 tons. LME actuals discount maintains stable, which is $54. Technically, nickel price ended loss and rallied. Focus on resistance at 10-week average lines near $10500. If broke this price, tendency of rally will continue.
Last week copper market was weak. Copper price rushed high then rolled back. LME inventory last Friday decreased 2350 tons to 257000 tons. LME actuals discount narrowed $7.25 to discount $8.75. Industry side, Zambia 2016 copper output increased 8% year-to-year to 771000 tons. Since Sentinel of First Quantum output increase offsets the unfavorable influence of electric power shortage. Technically, copper price meets stress near $6020; maintains interval fluctuation tendency and seek buying opportunity.
Last Friday soybean US section closed down, since institutions still maintain highly output expectation. Recently South America weather is ideal, which helps market to recovery South America fertility confidence. Coastal oil plants resume soybean meal actuals quotation. Influenced by overseas section, most quotations slightly dropped. Recently oil plant quotations are normally RMB 3200-3280/ton. As for operation, recommend long position with bolster of 4150. Reduce soybean meal long position at high point.
                                                                 Dong LV (Investment Certificate NO. TZ008452)