February 12, 2009
Thursday: China soy futures settle tad up, await guidance from CBOT
Soybean futures traded on the Dalian Commodity Exchange settled slightly higher Thursday, with prices trading in a very tight range as the market awaited more clear signs from the Chicago Board of Trade.
The benchmark September 2009 soybean contract settled RMB5 higher at RMB3,546 a metric tonne.
The contract traded above and below yesterday's settlement, within a narrow RMB45/tonne range.
"China's earlier purchases of (U.S. soybeans) were large." Meanwhile, the market is waiting for more clear trading guidance from CBOT, said Monica Tu at commodities consultancy Shanghai JCI.
China's soybean imports in the past three months have been above 3 million tonnes each month, partly helped by higher domestic prices.
Trading volume for all soybean contracts declined to 295,472 lots from 386,382 lots Wednesday.
Opening interest fell 5,700 lots to 309,386 lots.
Corn futures settled little changed, while soymeal futures, soyoil futures and palm oil futures settled lower.
Soymeal cash prices are likely to trend lower as soybean processing plants restarted their operations after the Chinese New Year holiday, while feedmeal demand remains weak, said a local trader.
Concerns over the drought's impact on the rapeseed crop in China have pushed vegetable oil prices higher recently, but profit-taking and possible increased output sent the oils lower again.
Vice Agriculture Minister Wei Chaoan said China is likely to see an increase in rapeseed output this year, despite the impact of the ongoing drought.
"An output increase is very likely," as drought relief measures have greatly eased the situation in the rapeseed growing areas.
Analysts had earlier said the rise in rapeseed acreage will help increase output.
Thursday's settlement prices in yuan a metric tonne for benchmark contracts and the volume for all contracts in lots (One lot is equivalent to 10 tonnes):
Contract Settlement Price Change Volume
Soybean Sep 2009 3,546 Up 5 295,472
Corn Sep 2009 1,673 Up 2 122,706
Soymeal May 2009 2,803 Dn 6 547,282
Palm Oil May 2009 5,334 Dn 100 135,376
Soyoil May 2009 6,362 Dn 96 497,032
