February 15, 2008
Friday: China soybean futures settle higher on easing policy concerns
Soybean futures traded on the Dalian Commodity Exchange settled at new highs Friday in tandem with overnight soybean futures gains at the Chicago Board of Trade as well as on easing concerns about governmental price control measures.
The benchmark September 2008 soybean contract settled RMB55 higher at 4,929 a metric tonne.
The government issued a slew of measures to curb rapid growth in commodities prices ahead of the Lunar New Year to guarantee stability during the most important Chinese holiday.
But the market doesn't expect the government to control food prices as tightly as before the holiday, and the effects of price controls could be short-term, said Zeng Xuezhou, an analyst at Beite Futures.
Meanwhile, Federal Reserve Chairman Ben Bernanke's bearish forecast for the U.S. economic outlook fueled expectations of further U.S. dollar declines, making the commodities market a good harbor for investors, said Huang Xiao, a manager at Capital Futures.
China's rising demand for soybeans helped to support prices as well.
China imported 3.44 million metric tonnes of soybeans in January, up 41.5% from a year earlier, according to preliminary data issued by the General Administration of Customs Friday.
Palm oil, soyoil, soymeal and corn futures all settled higher.
Snow storms in southern China have caused an oilseed production stoppage due to tight power supplies. This and reduced soymeal and soyoil production helped support prices, analysts said.
Expectations of a recovery in the livestock breeding sector also pushed feedmeal prices, such as corn and soymeal, higher.
Friday's settlement prices in yuan a metric tonne and volume for all contracts in lots (One lot is equivalent to 10 tonnes):
Contract Settlement Price Change Volume
Soybean Sep 2008 4,929 Up 55 583,980
Corn Sep 2008 1,797 Up 2 578,524
Soymeal Sep 2008 3,502 Up 53 782,104
Palm Oil May 2008 10,682 Up 232 49,104
Soyoil May 2008 12,060 Up 280 409,656
