May 8, 2008

 

Thursday: China soybean futures settle up on CBOT rally; limited strike

 

 

China's soybean futures traded on the Dalian Commodity Exchange settled higher Thursday on an overnight Chicago Board of Trade soybean rally.

 

The benchmark January 2009 soybean contract settled RMB38 higher at RMB4,202 a metric tonne, up 0.9%, after trading in the RMB4,167-4,226/tonne range.

 

The January 2009 contract opened higher but dipped mid-session before regaining lost ground.

 

Strong domestic soybean cash prices may continue to push futures prices higher, said Yu Haifeng, an analyst at Tianqi Futures, in a note.

 

The expectations of a growers' strike resuming in Argentina, following a lack of progress in negotiations between farm groups and the government, helped support U.S. soybean prices.

 

But the strike will only delay supply until later this year, capping gains in soybean prices, said analysts.

 

Domestic supply will be ample in the coming months as China likely imported 2.7 million tonnes in April and 3.5 million-3.6 million tonnes in May, according to estimates from the China Soybean Network Web site.

 

The country imported 2.32 million tonnes in March.

 

Palm oil futures and soybean oil futures settled higher tracking a rise in CBOT soy oil contracts and record high crude oil prices overnight.

 

Cash trading in palm oil at Chinese ports was light amid weak consumption, while the expectations of a higher rapeseed harvest may cap any gains in edible oil, according to analysts.

 

The impact of snowstorms in the beginning of the year in the major rapeseed producing regions in the south will likely be much less than the market has expected; the total rapeseed output this year is likely to rise 4% on year to 11 million tonnes, said Dalu Futures.

 

Soymeal futures settled mostly lower, while corn futures settled mostly unchanged.

 

Thursday'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           4,202            Up  38          719,834

Corn                  Jan 2009           1,974       Unchanged        522,356

Soymeal           Sep 2008           3,437             Dn   7          378,262

Palm Oil            Sep 2008         10,286            Up  28           37,268

Soyoil               Sep 2008         10,830            Up  42          338,854