April 22, 2008
Tuesday: China soybean futures settle mostly higher on short-covering
Soybean futures traded on the Dalian Commodity Exchange settled mostly higher Tuesday on short-covering.
The benchmark January 2009 soybean contract settled up RMB23 at RMB4,141 a metric tonne.
There was some short-covering and bargain hunting, as traders don't expect prices to fall much due to high production costs.
But analysts said there was also no sharp rise in prices, reflecting limited investment interest.
"No one is willing to buy in large amounts, and the market may rebound a little further if there is more short-covering," said Xiao Jun, an analyst at grain consultancy Shanghai JCI.
The corn market may see more investment opportunities this year due to reduced planting acreage as farmers shift to soybeans due to higher profits.
Higher corn cash prices helped support corn futures.
Lower soyoil cash prices, a result of a large amount of edible oil imports amid the weak consumption season, pressured edible oil futures.
China imported 2.32 million tonnes of soybeans and 219,375 tonnes of soyoil in March, up 9.8% and 1.1%, respectively, from a year earlier, according to data Tuesday from the General Administration of Customs.
The country's palm oil imports in March rose 24% on year to 516,098 tonnes, the data showed.
Palm oil futures, soyoil futures and soymeal futures settled mostly lower, while corn futures settled almost unchanged.
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 4,141 Up 23 1,571,072
Corn Jan 2009 1,912 Dn 3 398,920
Soymeal Sep 2008 3,292 Dn 30 451,206
Palm Oil Sep 2008 10,346 Dn 102 4,342
Soyoil Sep 2008 11,176 Dn 136 373,058
