Strong internal and external interaction of China

Zhonghui Futures: with strong internal and external interaction, Shanghai Rubber continued to rise

tocom rubber futures closed higher on Tuesday, supported by stop loss buying by airdrop holders and a new round of buying by the fund. In addition, the market received further support from the rise of energy and precious metal futures and the tight spot supply in main production areas caused by floods. In the afternoon, selling at high prices suppressed the futures price, and contracted the increase at the end of the market. Shanghai Jiao is still out of the strong market today. In the morning, the price soared due to the Japanese tape. The highest intraday price was 20220, which was only 39 points away from the suspended price zone. The disk performance was strong, the trading volume reached a recent high of 470116, and the position was slightly reduced. The main ru703 opened at 19710 and closed at 20010. Fundamentals: 1. In terms of supply, at present, most production areas in Hainan have stopped cutting in an all-round way, and the southernmost production area has stopped cutting less than 10 days before the end of the year. Yunnan has stopped cutting in an all-round way, and the amount of agricultural reclamation pending orders has been significantly reduced, most of which are the inventory accumulated in the early stage. On the 22nd, the inventory of Shanghai rubber decreased by 525 tons to 73575 tons, indicating that the domestic spot supply is tight, resulting in the inventory of futures market being undertaken by end-users

2. In terms of consumption, the data shows that China's total tire output in June was 395.03 million, an increase of 16% over the same period last year, indicating that the rubber consumption of Tianjiao consumer countries represented by China is still strong

3. Internationally, the price of natural rubber raw materials in the three central markets in southern Thailand continued to rise unilaterally, and rose from the recent low of 43.67 baht/kg on November 30 to 56.02 baht/kg on December 20, with a cumulative sharp increase of 12.35 baht/kg, or more than 28%. However, the average daily trading volume expanded from less than 100 tons to more than 300 tons, reflecting the serious reluctance of rubber farmers to sell due to the shrinking supply in the production area and the sharp rise in rubber prices, However, factories and exporters took the initiative to purchase, which pushed the rubber price up. To sum up, the government should give enough attention and support to the experimental machine industry in terms of arbitrage demand in domestic natural rubber production areas and consumption demand in sales areas. Due to the comprehensive effects of natural disasters, currency depreciation, artificial reluctance to sell and rush to buy, the international supply has promoted the domestic and foreign rubber markets to perform seasonal rising market, and the future market may continue to challenge new highs. It is suggested that investors should be flexible in their timing and long every position

note: this reprint contains 11 The tensile strength testing machine has built a powerful experimental database, in which the source is indicated. The reprint is for the purpose of transmitting more information, and does not mean that it agrees with its views or confirms the authenticity of its contents