April 15, 2008
Tuesday: China soybean futures settle sharply up on record-high crude
Soybean futures traded on the Dalian Commodity Exchange settled sharply higher Tuesday on record-high crude oil prices overnight and weakness in the U.S. dollar.
The benchmark January 2009 soybean contract settled RMB120 higher at RMB4,186 a metric tonne.
Surging edible oil prices also helped boost soybean prices.
Short-covering helped drive the benchmark September 2008 soyoil contract limit-up in the morning session, but profit-taking in the afternoon erased some of the earlier gains before the contract closed limit-up.
Some technical buying also set in, as there was little market-moving news, said an analyst at Guotai Junan Futures.
"Market sentiment is recovering, as anyway, it's hard to say that a bear market is coming, in view of the tendency of rising crude oil prices and the falling dollar," he said.
Analysts participating in a grain and edible oil conference in Beijing expect soyoil prices to be volatile in 2008, with the market likely testing new highs later this year.
Domestic first grade soyoil cash prices are likely to move within the RMB10,000-RMB16,000/tonne range this year, said Cao Zhi, an analyst at the China National Grain and Oils Information Center.
He said domestic edible oil supply in 2008 will likely increase by 432,000 tonnes, while edible oil consumption could rise by 100,000-110,000 tonnes, possibly putting pressure on prices in the second half.
Palm oil futures, soyoil futures, soymeal futures and corn futures all settled higher.
Tuesday's settlement prices in yuan a metric tonne and the volume for all contracts in lots (One lot is equivalent to 10 tonnes):
Contract Settlement Price Change Volume
Soybean Jan 2009 4,186 Up 120 1,405,658
Corn Jan 2009 1,939 Up 12 628,644
Soymeal Sep 2008 3,376 Up 83 580,672
Palm Oil May 2008 10,786 Up 226 8,066
Soyoil Sep 2008 11,814 Up 504 322,012
