February 05, 2008

Tuesday: China soybean futures settle sharply up on strong CBOT rally
 

 

Soybean futures traded on the Dalian Commodity Exchange settled up sharply Tuesday on short-covering, after soybean futures traded on the Chicago Board of Trade rallied to three-week highs overnight.

 

The benchmark September 2008 soybean contract rose RMB71 to settle at RMB4,831 a metric ton, after trading between RMB4,802/tonne and RMB4,856/ton.

 

"The CBOT gains overnight, together with the bad weather reports, prompted short-covering ahead of the long holiday, sending prices higher," said a trader in Beijing.

 

Technically motivated buying and worries over harvest delays in northern Brazil as well as dryness in southern Brazil generated underlying price strength for CBOT soy futures overnight.

 

In China, snow storms since mid-January are arousing concerns over production of agricultural products.

 

Chinese demand for soybeans remains robust this year, while the U.S. is likely to use more soybeans for biodiesel production, lending support to prices, said Barclays Capital in a report.

 

Soymeal and soyoil futures also settled sharply higher, as another record high hit by CBOT soy oil futures overnight boosted sentiment.

 

Corn futures settled up a tad on spillover strength from soy futures.

 

The exchange will be closed Feb. 6-12 for the Chinese New Year holiday.

 

Tuesday's settlement prices in yuan a metric tonne and volume for all contracts in lots:

                 Contract          Price      Change     Volume

Soybeans   Sep 2008      4,831      Up    71       414,256
Soymeal     Sep 2008      3,375      Up    61       372,432
Soyoil        May 2008     11,342      Up 314        220,088
Corn          May 2008      1,779      Up     6        156,914
Palm Oil      May 2008     10,134     Up 298            8,486