1 Introduction
45
medium term that with the global economic downturn, the market is particularly
concerned about future demand and may be the main factor to suppress the trend of
oil prices in the future, and with the US presidential election approaching, the plan to
release strategic petroleum reserves is still under consideration. Industrial products
in the crude oil price slump led non-ferrous metals, chemicals, steel and others into
the correction shock. And the agricultural products also turned the trend, the early
rising soybean meal and other oil and grease varieties showed a significant decline.
Monetary easing in Europe and the US saved the sustained decline in industrial
production in the short term, but the subsequent rebound in industrial production
will still lack momentum if it fails to stimulate the improvement of the real economy.
Copper, aluminum, lead, zinc and other non-ferrous products’ futures decline in
about 1%; Rebar chong high fell back, down nearly 2.4%.
Business club chief researcher Liu Xintian believes that a slump in crude oil can
be regarded as the third function of signal fading only relying on the third can bring
the commodity market “bull” is obviously unrealistic, afternoon there will be other
varieties also can follow the role of the third fade and “flashy tun”, this will give the
commodity market “the gold nine” pose a challenge.
It is worth noting that in this round of QE3-driven market, the reaction of agricultural products is relatively exceptional, especially the soybean and soybean meal,
which had a strong rally in the early stage. QE3 has limited effect to boost the market,
and has shown an obvious decline this week. “Crazy” soybean meal starts to calm
down. US soybean and soybean meal futures were down 6.6% and 7.3%, respectively, while domestic soybean and soybean meal were down by 1.5% and 5.6%,
respectively. The drop in the price of beans and crude oil also led to a sharp drop
in soybean oil, palm oil and rapeseed oil, with the three domestic oils dropping by
4.7%, 5.4% and 1.7%, respectively.
Analysts believe that the United States soybean harvest into the month, dry weather
bad news gradually faded; the United States began to pull back beans. Domestic,
temporary storage soybean auction continued, the spot market supply has increased,
easing the upward momentum of soybean. In the early stage of the new beans market,
and no demand can bring new good news to the market, the trend of oil and oil is still
inclined to adjust, but supported by the global supply shortage background, before
the confirmation of the South American harvest is still high volatility market.
According to the investigation to Europe of personage of economic and trade
bound, the breed of small oilseed that can offer an export and small miscellaneous
grain is very much, wait for seed of millet, pine, sunflower to wait for a dozen kinds.
The end use of these varieties in the European grain and oil markets is for the production and processing of animal and bird feed and fish feed. Our small oil and small
grain color, taste can meet their needs. European merchants offer more reasonable
prices, as long as the quality of the products is stable. Concerned expert thinks,
develop the production of small oilseed and small miscellaneous grain energetically
and export, should be a content that development earns foreign exchange agriculture
henceforth.
45
medium term that with the global economic downturn, the market is particularly
concerned about future demand and may be the main factor to suppress the trend of
oil prices in the future, and with the US presidential election approaching, the plan to
release strategic petroleum reserves is still under consideration. Industrial products
in the crude oil price slump led non-ferrous metals, chemicals, steel and others into
the correction shock. And the agricultural products also turned the trend, the early
rising soybean meal and other oil and grease varieties showed a significant decline.
Monetary easing in Europe and the US saved the sustained decline in industrial
production in the short term, but the subsequent rebound in industrial production
will still lack momentum if it fails to stimulate the improvement of the real economy.
Copper, aluminum, lead, zinc and other non-ferrous products’ futures decline in
about 1%; Rebar chong high fell back, down nearly 2.4%.
Business club chief researcher Liu Xintian believes that a slump in crude oil can
be regarded as the third function of signal fading only relying on the third can bring
the commodity market “bull” is obviously unrealistic, afternoon there will be other
varieties also can follow the role of the third fade and “flashy tun”, this will give the
commodity market “the gold nine” pose a challenge.
It is worth noting that in this round of QE3-driven market, the reaction of agricultural products is relatively exceptional, especially the soybean and soybean meal,
which had a strong rally in the early stage. QE3 has limited effect to boost the market,
and has shown an obvious decline this week. “Crazy” soybean meal starts to calm
down. US soybean and soybean meal futures were down 6.6% and 7.3%, respectively, while domestic soybean and soybean meal were down by 1.5% and 5.6%,
respectively. The drop in the price of beans and crude oil also led to a sharp drop
in soybean oil, palm oil and rapeseed oil, with the three domestic oils dropping by
4.7%, 5.4% and 1.7%, respectively.
Analysts believe that the United States soybean harvest into the month, dry weather
bad news gradually faded; the United States began to pull back beans. Domestic,
temporary storage soybean auction continued, the spot market supply has increased,
easing the upward momentum of soybean. In the early stage of the new beans market,
and no demand can bring new good news to the market, the trend of oil and oil is still
inclined to adjust, but supported by the global supply shortage background, before
the confirmation of the South American harvest is still high volatility market.
According to the investigation to Europe of personage of economic and trade
bound, the breed of small oilseed that can offer an export and small miscellaneous
grain is very much, wait for seed of millet, pine, sunflower to wait for a dozen kinds.
The end use of these varieties in the European grain and oil markets is for the production and processing of animal and bird feed and fish feed. Our small oil and small
grain color, taste can meet their needs. European merchants offer more reasonable
prices, as long as the quality of the products is stable. Concerned expert thinks,
develop the production of small oilseed and small miscellaneous grain energetically
and export, should be a content that development earns foreign exchange agriculture
henceforth.