April 23, 2008
Wednesday: China soybean futures settle up on CBOT, high crude oil price
Soybean futures traded on the Dalian Commodity Exchange settled higher Wednesday in line with an overnight rise on the Chicago Board of Trade.
The benchmark January 2009 soybean contract settled RMB68 higher at RMB4,209 a metric tonne after trading between RMB4,189 and RMB4,249/tonne.
The possible resumption of a strike by farmers in Argentina, a weak U.S. dollar and record-high crude oil prices helped push the market higher.
Farmers in Argentina vow to resume blockades May 2 if the government doesn't offer concrete concessions, mainly the reversal of a new sliding-scale tax on grain exports imposed last month which sharply boosted the duty on soybean shipments.
But analysts said the strike could only have a short-term impact on the market and soybean supply will be the key in deciding market fundamentals.
The rise in (soy products futures) "doesn't show a tendency yet" and is only a rebound if there are no other catalysts to push it higher, said Xiao Jun at Shanghai JCI, a grain consultancy firm.
Meanwhile, the market remains cautious after the recent big price fluctuations, and price falls usually encourage more selling rather than buying, said analysts.
How much global soybean acreage will increase is still an uncertainty, while warming weather may pose a threat to final soybean output this year, said Li Dongji, an analyst at Guotai Junan Futures.
Palm oil futures and soyoil futures settled higher on high crude oil prices.
Soymeal futures and corn futures settled higher on improving demand for feedmeal.
Wednesday'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 4,209 Up 68 1,110,676
Corn Jan 2009 1,916 Up 4 369,900
Soymeal Sep 2008 3,376 Up 84 339,834
Palm Oil Sep 2008 10,636 Up 290 3,642
Soyoil Sep 2008 11,470 Up 294 345,346
