March 14, 2008
Friday: China soybean futures settle up,take breather from fall
Soybean futures traded on the Dalian Commodity Exchange settled higher Friday, taking a breather from a fall earlier this week.
The benchmark January 2009 soybean contract settled RMB71 higher at RMB4,522 a metric ton.
A recovery in soybean futures on the Chicago Board of Trade also helped support prices.
Soybean futures have been falling for most sessions recently in a correction from an earlier surge and on rumors that China has been releasing soyoil into the market.
Many traders have been worried that the big fall in 2004 will reappear and consequently increased selling volume.
"Market (participants) are confused about the trend and prefer to stay on the sidelines," said Yu Haifeng, an analyst at Tianqi Futures.
Analysts say the market may fall further next week, pressured by the coming arrival of South America soybeans.
An export tax hike on Argentina's soybeans and soyoil had little impact on the market, as a stronger Chinese yuan will help offset any increase in import costs, said analysts.
The market is likely to consolidate ahead of the U.S. Department of Agriculture's estimate at the end of March on soybean acreage for the new crop season, said Yu.
Meanwhile, drier weather this year may also threaten soybean production and add uncertainties.
Palm oil futures, soyoil futures and soymeal futures settled mostly higher, while corn futures settled little changed.
Friday's settlement prices in yuan a metric tonne and the volume for all contracts in lots (One lot is equivalent to 10 tons):
Contract Settlement Price Change Volume
Soybean Jan 2009 4,522 Up 71 895,736
Corn Sep 2008 1,816 Up 3 425,006
Soymeal Sep 2008 3,503 Up 27 683,664
Palm Oil May 2008 11,234 Up 98 47,768
Soyoil Sep 2008 11,978 Up 4 722,644
