Daily Report 140217
Monday copper market was weak to go upward. Copper price reached $6204 then rolled back most profit. LME inventory yesterday decrease 375 tons to 248000 tons. LME actuals discount narrowed $5 to discount $2.5. Industry side, supply problem still exists. Copper mine Escondida of BHP strike still continues. Technically, after copper price broke former fluctuation range, there is still space for rally. If roll back happens, can choose opportunity to buy.
Domestically, DCE soybean No.1 contract is strong, since domestic soybean actuals price is strong, and later period high quality grain is at scarcity. Market performance is strong. Oil meal is weak, since it’s lack long factor. Actuals side, after holidays filtered grain purchasing price increased to RMB 3840-3940/ton. Soybean meal actuals quotation increased RMB 20-40/ton. Oil plant quotations are mainly RMB 3200-3260/ton. As for operation, recommend long position with bolster of 4150. Reduce soybean meal long position at positon of 3000.
Stock Index
Yesterday the stock index continued to rebound, stock index steady shock higher under the driven of the sub-new shares, banking stocks, coal, colored and other weight plates. News: 1: Till the end of December 2016, the national PPP storage project is 11260, and the investment amount is 13.5 trillion yuan. After holidays new manufacturing and service industry PMI shows that the economy is still in the expansion stage, combined with pre-holiday announced industrial profits, new credit and other data in December, the economic fundamentals for the better. Steady growth of the country supports the economic fundamentals; supply side reform makes corporate profits rise. Current rallied a lot, but there is still space, bargain hunting.
                                                                                              Dong LV (Investment Certificate NO. TZ008452)