January 29, 2008

 

Tuesday: China soybean futures settle up; try to recover earlier losses

 

 

Soybean futures traded on the Dalian Commodity Exchange settled higher Tuesday, with most agricultural products trying to recover losses from earlier this month.

 

The benchmark September 2008 soybean contract settled RMB43 higher at 4,667 a metric ton.

 

"Agricultural products are on a rebound, and they are likely to rise further after the Chinese New Year due to (possible) easing policies," said Zeng Xuezhou, an analyst at Beite Futures.

 

China has issued a slew of policies, including price control measures, to rein in surging food prices ahead of the holiday. But analysts don't expect the price controls to remain in place for long as the effects of such administrative measures could place limits on the market economy.

 

Palm oil prices are likely to consolidate at high levels as output in Malaysia in January is likely to fall due to the bad weather.

 

The recent palm oil arrivals at Chinese ports were sufficient to meet domestic demand in the weak consumption season, said Xiao Jun, an analyst at Shanghai JCI.

 

The recovery in crude oil prices from earlier steep losses and higher soyoil prices at the Chicago Board of Trade overnight helped to support domestic soyoil futures prices.

 

Palm oil futures settled mixed while soyoil futures and soymeal futures settled up.

 

Corn futures settled almost unchanged.

 

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

 

                Contract    Settlement Price  Change     Volume

 

Soybean     Sep 2008            4,667             Up  43      493,554

Corn           Sep 2008           1,745              Up   1      162,000

Soymeal     Sep 2008            3,318             Up  31      443,352

Palm Oil      May 2008           9,656             Up  80        32,070

Soyoil         May 2008         10,836             Up 150      307,410