Daily Report 070217
Monday nickel market was strong and broke 10-weeks average line. LME inventory yesterday increased 102 tons to 382000 tons. LME actuals discount narrowed $0.5 to discount $53.5. Technically, Nickel price ended loss and rallied. Yesterday broke 10-days average line. The rally tendency will continue.
Monday copper market was strong. Copper price fluctuated and went upward. The main reasons are markets’ worry about Chile and Indonesia copper mine supply. LME inventory yesterday decreased 3425 tons to 254000 tons. LME actuals discount enlarged $2 to discount $10.25. Industry side, BHP2017 the first half year copper output decreased 7% to 712000 tons. Technically, copper price rallied. Short term focus on copper price reached stress line since last November again. As for trading, seek long opportunity.
Domestically, tendency deviated the overseas section. On the one side trade just recovered after holidays. On the other side domestic actuals market weak trade atmosphere and strong price bolstered the futures market price. Soybean meal actuals trade was weak. Since there is inventory before holidays, now companies are mainly digest the inventory. Coastal oil plant quotations are normally RMB 3180-3250/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)