May 5, 2008
Monday: China soybean futures settle up, tracking Friday's CBOT gains
China's soybean futures traded on the Dalian Commodity Exchange settled mostly higher Monday, tracking gains made at the Chicago Board of Trade Friday.
The benchmark January 2009 soybean contract settled RMB45, or 1.1%, higher at RMB4,099 a metric tonne after trading between RMB4,047-4,122/tonne.
"Overall prices of agricultural products are unlikely to fall much given the current global grain crisis, and the old (soybean) contracts continue to support the whole market," said Zhang Chunjiang, a trader at China International Futures Co.
Domestic soybean stocks have been limited due to reduced soybean output last year.
But the U.S. Federal Reserve's indication it may stop cutting interest rates may boost the dollar, which may in turn put downward pressure on the commodities market, analysts said. It appears less likely that an Argentinean farmers' strike will resume, which would also pressure commodities' prices downward. At the same time, crude oil prices are expected to consolidate around current high levels, which would lend only limited support to commodities.
Thus domestic soft futures are likely to trade in a relatively narrow range in the near term, they said.
Edible oil futures' performance was lackluster as some funds retreated from the market in the face of government efforts to rein in high inflation.
Palm oil futures and soyoil futures settled mostly higher, in line with solid gains in crude oil.
Soymeal futures and corn futures also settled higher.
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 4,099 Up 45 557,460
Corn Jan 2009 1,976 Up 13 563,488
Soymeal Sep 2008 3,386 Up 71 278,116
Palm Oil Sep 2008 10,190 Up 44 56,044
Soyoil Sep 2008 10,826 Unchanged 255,766
