February 25, 2008

 

Monday: China soybean futures settle up on strong edible oil demand

 

 

Soybean futures traded on the Dalian Commodity Exchange settled at new highs Monday, buoyed by expectations of strong demand for edible oil.

 

Rising crude oil prices and new highs for soybeans and soyoil at the Chicago Board of Trade Friday also helped to boost DCE prices.

 

The benchmark September 2008 soybean contract settled RMB125 higher at RMB5,199 a metric tonne.

 

Strong Chinese demand amid tight global edible oil supply "drove the buyers crazy," said a local analyst.

 

Chinese importers booked nine to 11 cargoes of fresh soybeans from South America in the week ended Feb. 22, up from the seven to nine cargoes in the week ended Feb. 15, said a report Monday by commodities analysis firm Shanghai JCI.

 

The soybeans are expected to be delivered in April, May and June, said the report.

 

The higher amount was due to falling cash prices in South America ahead of a harvest and expected increased Chinese demand for soyoil due to reduced rapeseed output in China, a result of heavy snowstorms in the country's south, said JCI.

 

There will be heavy snowfalls and rain in central and eastern China in the coming three days, according to the state meteorological bureau's weather forecast.

 

Palm oil futures and soyoil futures also settled at new highs.

 

Soymeal futures and corn futures settled higher, while benchmark palm oil and soyoil futures settled at new highs.

 

Monday'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      5,199         Up     125       834,856

Corn       Sep 2008      1,809         Up     17         654,868

Soymeal  Sep 2008      3,622         Up     78         855,258

Palm Oil   May 2008     11,396        Up    332        17,004

Soyoil     May 2008     13,072         Up    390        195,476