January 30, 2008
Wednesday: China soybean futures settle mixed; pre-holiday volume light
Soybean futures traded on the Dalian Commodity Exchange settled mixed Wednesday in a market lacking fresh news.
Trading wasn't very active ahead of the Lunar New Year holiday in early February.
The benchmark September 2008 soybean contract settled RMB2 lower at RMB4,665 a metric ton.
Lower soymeal prices pressured soybean prices, but the downside in soybeans is also limited due to reduced output last year, said Wu Weijun, general manager of the investment management department at Huixin Futures.
Demand for feedmeal has been weak recently, as a large amount of pigs have been slaughtered for the coming holiday.
Analysts expect demand for feedmeal, including soymeal, to pick up in May, as farmers are likely to raise more pigs after the holiday.
The worst weather in decades in central and southern China, the country's main areas for growing winter wheat and rapeseed crop, is unlikely to have a big impact on grain and oilseeds output, said industry participants.
Heavy snow, rains and frost have struck these regions for more than two weeks, but "the low temperature is generally good for wheat, as it can help curb insect pests," said Wang Shoucong, deputy chief of the Ministry of Agriculture's planting management department.
At present, winter wheat and winter rapeseed crop output in 2008 is likely to be at least the same level as last year, with increased rapeseed crop acreage making up for any losses, Wang said.
Palm oil futures and soyoil futures settled mostly higher, while soymeal futures settled down on sluggish demand for feedmeal.
Corn futures settled slightly higher.
Wednesday's settlement prices in yuan a metric tonne and the volume for all contracts in lots (One lot is equivalent to 10 tons):
Contract Settlement Price Change Volume
Soybeans Sep 2008 4,665 Dn 2 525,804
Corn Sep 2008 1,749 Up 4 257,692
Soymeal Sep 2008 3,289 Dn 29 568,840
Palm Oil May 2008 9,758 Up 102 18,090
Soyoil May 2008 10,910 Up 74 321,364
