January 21, 2008
Monday: China soybean futures settle up on rising cash prices
Soybean futures traded on the Dalian Commodity Exchange settled higher Monday on rising cash prices.
The benchmark September 2008 soybean contract settled RMB53 higher at 4,705 a metric tonne.
Soybean cash prices in Heilongjiang province, the major soybean producing region, were higher Monday.
Prices in Suihua, Heilongjiang province, were around RMB4,540/tonne, up RMB20/tonne from Friday.
Despite the government's repeated statement that China can guarantee the market supply of essential commodities during the Chinese New Year holiday, edible oil stocks aren't at high levels, traders said.
China will increase the market supply of essential commodities during the Lunar New Year, the official People's Daily reported Monday, citing Commerce Minister Chen Deming.
The Ministry of Commerce will release meat from state reserves during the holiday and continue to urge companies to add edible oil supply as the prices of food, including edible oil, still face upward pressure, it said.
Meanwhile, demand for palm oil remains weak due to the winter season.
Malaysia's palm oil exports during Jan 1-20 were below expectations, sharply lower on thinner purchases by China and the E.U., with argo surveyor Intertek estimating that exports fell 40.02% on month.
But "edible oil prices are likely to remain at high levels ahead of Lunar New Year, and may fall after that on weaker demand," said Zhao Qiang, research manager at Tianqi Futures.
Palm oil futures settled mixed while soyoil futures settled mostly higher.
Soymeal futures and corn futures settled mostly lower.
Monday'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 4,705 Up 53 1,011,876
Corn Sep 2008 1,756 Dn 22 804,966
Soymeal Sep 2008 3,332 Up 10 593,848
Palm Oil May 2008 9,974 Dn 10 25,592
Soyoil May 2008 10,866 Dn 34 444,142
