January 3, 2008

 

Thursday: China soybean futures settle at new highs on high cash prices

 

 

Soybean futures traded on the Dalian Commodity Exchange settled at new highs Thursday on strong soybean cash prices.

 

The record high set by their counterparts on the Chicago Board of Trade overnight boosted sentiment as well.

 

The benchmark September 2008 soybean contract settled RMB84 higher at 4,776 a metric tonne.

 

Soybean prices in northeastern soybean producing regions rose Thursday, with prices in Baoqing region rising RMB20/tonne from Wednesday to RMB4,100-RMB4,140/tonne.

 

Farmers have very limited stocks on hand, so traders had to raise purchase prices, China Soybean Network said.

 

Edible oil prices remained bullish as well. Palm oil prices in Guangzhou province surged to RMB9,000/tonne Thursday, RMB150/tonne higher than Wednesday.

 

January soybeans at CBOT settled 33 1/2 cents higher at US$12.32 1/2, while March soybeans ended 34 1/2 cents higher at US$12.48 3/4 on the back of speculative-led buying.

 

"Any government's (price control) policy is unlikely to have much impact on soybean prices as the supply is tight this year," said Zhao Qiang, research department manager at Tianqi Futures.

 

Palm oil futures and soyoil futures also set new highs, while soymeal futures and corn futures settled mostly higher as well.

 

Thursday's settlement prices in yuan a metric tonne and volume for all contracts in lots (One lot is equivalent to 10 tonnes):

 

               Contract     Settlement Price  Change     Volume

Soybean  Sep 2008      4,776         Up     84        1,265,032

Corn        May 2008      1,685        Up      3          307,936

Soymeal  Sep 2008      3,447         Up     46         851,322

Palm Oil   May 2008      9,482         Up   194          27,048

Soyoil      May 2008     10,570        Up    98          170,338