April 10, 2008
Thursday: China soybean futures settle up on record high crude oil
Soybean futures traded on China's Dalian Commodity Exchange settled higher Thursday on record high crude oil prices overnight as well as U.S. dollar weakness.
The benchmark January 2009 soybean contract settled RMB74 higher, or 1.86%, at RMB4,047 a metric tonne.
Uncertainty about a farmer strike in Argentina - farmers have said they will resume striking on May 1 if talks with the government break down - helped support soybean prices despite a negative report issued by the U.S. Department of Agriculture last night.
The upward revision in ending stock estimates from the USDA was largely within expectations, said an analyst at grain consultancy firm Shanghai JCI.
However, overall recovery in sentiment will take time after major recent price fluctuations, meaning a big jump in prices is unlikely in the near term.
Limited domestic stocks will lend strong support to soybean prices later on, even if South American supply is sufficient, said Chen Chao, a manager at Changjiang Futures.
He expects vegetable oil prices have seen their top for this year, after soyoil futures prices hovered near RMB15,000/tonne in early March.
Soyoil supply will be sufficient until July because of the South American harvest, he added.
Palm oil futures, soyoil futures, soymeal futures and corn futures all settled higher.
Thursday'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 4,047 Up 74 1,155,760
Corn Sep 2008 1,761 Up 8 455,562
Soymeal Sep 2008 3,252 Up 89 442,404
Palm Oil May 2008 10,540 Up 202 6,846
Soyoil Sep 2008 11,052 Up 192 319,130
