May 7, 2008

 

Wednesday: China soybean futures settle higher on low domestic stocks

 

 

China's soybean futures traded on the Dalian Commodity Exchange settled slightly higher Wednesday on limited domestic soybeans available for delivery.

 

The benchmark January 2009 soybean contract settled RMB19, or 0.46%, higher at RMB4,164 a metric tonne.

 

Trading was light as long position holders face policy risks from government measures aimed at curbing high inflation, an industry participant said.

 

The benchmark soybean contract opened higher, but gave back most gains later, as soyoil contracts fell.

 

Soybean contracts lost upward momentum after gains in recent sessions, as investors chose to lock in profits, according to Tianqi Futures.

 

A sharp decline in trading volume indicated caution, with uncertainty about whether Argentinean farmers will resume a strike adding to pressure.

 

Palm oil and soyoil futures settled lower despite overnight soyoil gains at the Chicago Board of Trade and record-high crude oil prices.

 

Ample supply in the cash market during weak consumption season is putting downward pressure on edible oil futures, said Xiao Jun, an analyst at grain consultancy Shanghai JCI.

 

Analysts said it would take time for edible oil demand to pick up.

 

Soymeal futures and corn futures settled higher.

 

Wednesday'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           4,164          Up  19          626,990

Corn                  Jan 2009            1,974          Up   6          514,110

Soymeal            Sep 2008           3,444           Up   2          363,284

Palm Oil             Sep 2008         10,258          Dn  32           47,346

Soyoil                Sep 2008         10,788          Dn 118         270,092