April 18, 2008

 

Friday: China soybean futures settle higher on CBOT gains; corn steady

 

 

Soybean futures traded on the Dalian Commodity Exchange settled up Friday on overnight gains in Chicago Board of Trade soybean. Analysts said consolidation is likely to continue for a while.

 

The benchmark January 2009 soybean contract settled RMB40 higher at RMB4,209 a metric tonne, after trading between RMB4,159/tonne and RMB4,239/tonne.

 

"The near-term outlook is unclear, given the speculative forces and mixed fundamental developments," said Gao Yanrong, an analyst at Dalu Futures.

 

Spot soybean prices in major producing regions gained this week, as higher CBOT futures prices prompted buying by crushers.

 

Analysts said domestic cash prices are likely to consolidate at high levels at least until the end of the month, and any further gains for CBOT soybeans will likely provide upward momentum for domestic cash prices.

 

However, analysts said the government's firm determination to cap the gains of agricultural products and the mixed demand scenario for soybean and soy products will add to the difficulty in determining the price outlook.

 

China booked 17-19 soybean cargoes mostly from the U.S. and Argentina this week, almost double from a week earlier, to feed the state reserves, according to data provided by Shanghai JCI Friday.

 

Corn futures settled little changed.

 

Friday's settlement prices in yuan a metric tonne and volume for all contracts in lots:

 

Contract          Settlement          Price          Change          Volume

Soybeans          Jan 2009          4,209            Up 40         1,192,292

Soymeal           Sep 2008          3,404            Up 61           476,870

Soyoil               Sep 2008        11,754            Up 12           442,048

Corn                 Jan 2009          1,938             Up  4           468,082

Palm Oil            Sep 2008        10,816            Up 26             34,784