April 2, 2008
Wednesday: China soybean futures settle mostly higher on CBOT recovery
China's soybean futures traded on the Dalian Commodity Exchange settled mostly higher Wednesday after their counterparts on the Chicago Board of Trade recovered overnight.
The benchmark January 2009 soybean contract settled RMB5 higher, or 0.13%, at RMB3,887 a metric tonne.
Some bargain hunting funds flowed into the market after the limit-down Tuesday.
The market will monitor CBOT trends closely, while a recovery in sentiment still needs time, said Cui Ruijuan, a researcher at Guangfa Futures, adding uncertainties in U.S. subprime woes may pressure the market later on.
Analysts don't expect big fluctuations in the market to reappear, due to the government's strict control of the market.
China issued a temporary price intervention policy at the start of this year, in which any price rise by big producers or traders must be approved by the country's economic planner.
Yihai Jiali Investment Corp., a major edible oil producer in China, is likely to raise its prices soon, after its proposal was cleared by the National Development and Reform Commission.
The NDRC said Tuesday it "didn't object to" the price hike application proposed by the company.
"The prices of vegetable oil are around their bottom, and any fall could be limited in degree," said Chen Yanjun, an analyst at the Zhengzhou Grain Wholesale Market.
Palm oil and soyoil futures settled higher, while soymeal futures settled mostly lower.
Corn futures settled slightly higher.
Wednesday'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 Jan 2009 3,887 Up 5 1,451,346
Corn Sep 2008 1,775 Up 7 672,402
Soymeal Sep 2008 3,020 Dn 37 490,760
Palm Oil May 2008 9,944 Up 76 51,216
Soyoil Sep 2008 10,318 Up 112 618,028
