February 13, 2009

China's soybean futures traded on the Dalian Commodity Exchange settled slightly up Friday, but trading was very light as participants remained cautious, doubtful over market direction.

 

The benchmark September 2009 soybean contract settled RMB9 a metric tonne higher at RMB3,555/tonne, up 0.3%.

 

Although Chicago Board of Trade soybeans finished lower overnight, DCE soybeans managed to stay in positive territory during the session.

 

Analysts said a rise in freight fees after the Lunar New Year holiday helped support DCE prices, as domestic consumption mostly depends on imported soybeans.

 

Signs of China's economy recovering ahead of the global economy, seen in the recent slew of economic data, and investment enthusiasm caused by lower interest rates also pushed prices higher.

 

"Although we are still in the midst of a decline, we can at least see the bottom," said a senior analyst with China National Cereals Trade Corp.

 

However, he added, DCE's better performance versus CBOT may at the most last until the end of February, since crude prices are anyway being pressured by high U.S. stocks and the drought in South America will cease to be a market focus by then.

 

Chinese equities snapped a two-day losing streak Friday to end sharply higher amid heavy trading, thanks to ample liquidity and expectations Beijing will unveil more sector-specific stimulus packages.

 

The trading volume of all soybean contracts declined to 177,812 lots from 295,472 lots Thursday.

 

The open interest fell 9,584 lots to 299,802 lots Friday.

 

Corn, soybean meal, soybean oil and palm oil futures all settled up.

 

Friday's settlement prices in yuan a metric tonne for benchmark contracts and volume for all contracts in lots (one lot is equivalent to 10 tonnes):

                               

Contract          Settlement          Price          Change      Volume

Soybean          Sep 2009           3,555          Up    9       177,812

Corn               Sep 2009           1,676           Up    3        76,200

Soy Meal         May 2009           2,827           Up   24     437,074

Palm Oil          May 2009            5,412          Up   78     121,252

Soy Oil            May 2009           6,446          Up   84      359,226