January 14, 2008

 

Monday: China soybean futures settle up on new CBOT highs

 

 

Soybean futures traded on the Dalian Commodity Exchange settled higher Monday on record high prices on the Chicago Board of Trade.

 

The benchmark September 2008 soybean contract settled RMB90 higher at RMB4,843 a metric tonne.

 

CBOT soybean futures ended sharply higher Friday, setting new contract highs, with new crop futures soaring to their daily upper trading limits.

 

But analysts said domestic soybean contracts are unlikely to catch up with the gains on CBOT, as China's price control measures ahead of the Lunar New Year holiday in early February may put pressure on domestic food prices.

 

Xia Tian, an analyst at Yongan Futures, expects the benchmark September 2008 soybean contract to meet strong resistance at RMB5,000/tonne in the near term.

 

Palm oil futures hit limit-up Monday on record-high palm oil prices on Malaysia's derivatives exchange.

 

Lower production due to floods in Malaysia and strong consumption in Asia ahead of the Lunar New Year have set a bullish tonnee for palm oil prices.

 

Cash palm oil prices at China's Zhangjiagang port rose RMB450/tonne from Friday to RMB9,900-RMB9,950/tonne on rising import costs.

 

Soyoil futures and soymeal futures both surged, while corn futures settled slightly higher.

 

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

 

                Contract      Settlement Price  Change     Volume

Soybeans  Sep 2008      4,843         Up      90       1,162,354

Corn         Sep 2008      1,842         Up       8          442,458

Soymeal    Sep 2008      3,548         Up     104        948,478

Palm Oil     May 2008     10,054       Up      314         12,642

Soyoil        May 2008     10,924        Up     252        271,146