April 17, 2008

 

Thursday: China soybean futures settle mixed; price controls of concern

 

 

China's soybean futures traded on the Dalian Commodity Exchange settled mixed Thursday on concern about price control measures.

 

The benchmark January 2009 soybean contract settled RMB11, or 0.26%, higher at RMB4,169 a metric tonne.

 

China's consumer price index rose 8.3% in March compared with the same month last year, slightly lower than February's nearly 12-year-high rise of 8.7%.

 

Escalating inflation is being fueled mainly by rapid increases in food - including vegetable oil - prices.

 

The key problem facing the domestic economy is overall high prices that are threatening to continue rising as global grain and crude oil prices soar, China's State Council said Wednesday.

 

China will maintain its tight monetary policy, and focus on curbing the surge in prices, it said Market participants are concerned the prices of major commodities will be among the items under strict control.

 

"Any rise will be just a spike," said Wang Xiaoguang, an analyst at Galaxy Futures, adding that the market is turning bearish.

 

However, corn prices may be supported by reduced acreage for the crop globally, as more farmers are choosing to grow soybeans in pursuit of higher profits, he said.

 

Palm oil, soyoil, soymeal and corn futures settled mostly lower.

 

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           4,169           Up 11           830,540

Corn                 Jan 2009          1,934            Dn  6           358,366

Soymeal           Sep 2008          3,343           Dn 23           334,086

Palm Oil           Sep 2008         10,790           Dn 62             27,218

Soyoil              Sep 2008         11,742           Dn 34           412,318