April 25, 2008
Friday: China soybean futures settle down on CBOT, crude oil fall
China's soybean futures traded on the Dalian Commodity Exchange settled lower Friday, in tandem with the fall of their counterparts at Chicago Board of Trade overnight.
The benchmark January 2009 soybean contract settled RMB53, or 1.3%, lower at RMB4,118 a metric tonne, after trading between RMB4,100-4,135/tonne.
"There are many uncertainties in the market, and funds now prefer short-term trading activities," said Yu Haifeng, an analyst at Tianqi Futures.
Uncertainties include possible resumption of farmers' strike in Argentina, expectations Indonesia may cut export tax rate on palm oil and final soybean planting acreage in U.S. and China.
The decline of crude oil prices overnight also pressured the entire commodities market.
"The market is now too sensitive and (sentiment) is too weak," said an official at a state grain reserve house.
Meanwhile, apparently increasing government willingness to influence major commodities prices, especially edible oil, is plaguing the market - as is ample supply.
Increased vegetable oil and oilseed imports to build up state reserves, as well as sluggish demand during the weak consumption season, pressured soyoil prices lower.
China imported 2.01 million tonnes of edible oil and 7.78 million tonnes of soybeans in the first quarter, up 9% and 36%, respectively, from a year earlier.
Palm oil , soyoil and soymeal futures settled lower.
Corn futures settled slightly higher.
Friday'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 4,118 Dn 53 609,992
Corn Jan 2009 1,926 Up 6 465,816
Soymeal Sep 2008 3,312 Dn 55 207,060
Palm Oil Sep 2008 10,322 Dn 254 22,264
Soyoil Sep 2008 11,230 Dn 236 250,906
