April 28, 2008

 

Monday: China soybean futures settle tad up on high shipping fees

 

 

China's soybean futures traded on the Dalian Commodity Exchange settled slightly higher Monday on high shipping costs and support from corn.

 

The benchmark January 2009 soybean contract settled RMB3 higher at RMB4,121 a metric tonne, after trading between RMB4,098-4,137/tonne.

 

Increased shipping costs due to higher crude oil prices put upward pressure on soybean import costs, analysts said.

 

Meanwhile, as farmers were occupied with spring planting, and not selling actively, soybean cash prices were stronger, lending support to futures prices.

 

But soybean prices will continue to be pressured downward by increasing acreage, especially as wet weather in U.S. has hampered growers from putting much corn in the ground, meaning soybeans may gain additional area at the expense of corn.

 

More volatility is likely in the market, said Chen Yanjun, an analyst at Zhengzhou Grain Wholesale Market, because of uncertainty regarding a possible resumption of a farmers' strike in Argentina this week, possible drought later this year ahead of the harvest season and a U.S. Department of Agriculture report due in late June on final planting areas.

 

Palm oil futures and soyoil futures settled mostly higher.

 

Analysts said edible oil futures are likely to consolidate within a very narrow range in the near term, with the market focus switching to corn.

 

Soymeal futures and corn futures settled higher.

 

The shift from corn planting area to soybean area both globally and domestically helps attract funds into corn futures, said Wang Xiaoguang, an analyst at Galaxy Futures.

 

Corn futures trading volume jumped to 1,287,642 lots Monday from 465,816 lots Friday.

 

Monday'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          4,121          Up    3            595,800

Corn                  Jan 2009         1,964          Up   38         1,287,642

Soymeal           Sep 2008          3,339          Up   27           163,718

Palm Oil            Sep 2008        10,358          Up   36             25,178

Soyoil               Sep 2008        11,240          Up   10           267,496