January 15, 2008

 

Tuesday: China soybean futures settle mixed; goverment price control warning

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mixed Tuesday after the government repeated its stance on controlling prices.

 

The benchmark September 2008 soybean contract settled RMB46 lower at RMB4,797 a metric tonne.

 

The State Council held a video conference with local government officials Monday, saying it must take comprehensive measures to control the rapid rise in food prices.

 

"Domestic supply of important commodities and daily necessities can be guaranteed...(and the government) is confident it can guarantee the stability of market supply and prices," it said.

 

A surge in prices of foodstuffs and food since last year, especially those of vegetable oil and meat, pushed China's consumer price index growth to an 11-year high in November.

 

But analysts said any price control measures would only be effective in the short term, as there is a shortfall in global oilseeds output.

 

With demand for soymeal seen picking up after the Lunar New Year holiday, soymeal prices will likely rise further, while palm oil demand will also rise as the weather gets warmer, said Pei Yong, research manager at Chinatex Grains & Oils Import & Export Corp.

 

Palm oil futures settled mostly higher, while soyoil futures settled mixed. Soymeal futures and corn futures settled mostly lower.

 

Tuesday'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      4,797         Dn     46         1,180,838

Corn          Sep 2008      1,823         Dn     19          471,148

Soymeal    Sep 2008      3,530         Dn     18           724,582

Palm Oil     May 2008     10,190        Up    136          25,636

Soyoil        May 2008     10,976        Up      52          220,308