Daily Report 170217
Thursday copper market continued fluctuation, and meets stress at 5-days average line. LME inventory yesterday increased 900 tons to 237000 tons. LME actuals discount narrowed $2 to discount $17. LME actuals market starts the sign of stronger. Industry, Vale of Brazil last year fourth quarter total copper output was 123000 tons; incrased 8.9% year-to-year. Last whole year copper output was 453000 tons, higher than the expectation of 448000 tons. Technically, after copper price broke former fluctuation range, there is still space for rally. If roll back happens, can choose opportunity to buy.
Thursday Nickel market was fluctuated and went upward. Nickel price reached the highest $11060. LME inventory yesterday decreased 510 tons to 380000 tons. LME actuals discount enlarged $1.75 to discount $58.25. LME actuals market was relatively weak. Industry, Vale of Brazil fourth quarter Nickel output increased 0.4% year-to-year to 83000 tons. Last year total output was 311000 tons, lower than expected 315000 tons. Technically, Nickel price broke all the stress of average lines. Short-term rally tendency is expected to continue. Recommend long positon.
Domestically, Soybean No. 1 contract and Soybean meals fluctuated at high position. Actuals side, Northeast China district soybean price stably increased. Quotation price is RMB 3900-4000/ton. Domestic soybean meal actuals price slightly increase, since recent atmosphere is not good enough, oil plant quotation increased RMB 10-20/ton with RMB 3180-3220/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)