May 14, 2008

 

Wednesday: China soybean futures settle up on CBOT's sharp rise Tuesday

 

 

Soybean futures traded on the Dalian Commodity Exchange settled higher Wednesday, along with a sharp rise on the Chicago Board of Trade overnight.

 

The benchmark January 2009 soybean contract settled RMB44 higher at RMB4,505 a metric tonne after trading between RMB4,472-RMB4,542/tonne.

 

Expectations of a sustained strike by Argentine farmers and the smooth progress of corn planting in the U.S., which may limit a shift to soybean plantings, lent support to soybean prices.

 

Strong cash prices for domestically produced soybeans amid limited supply has been the main reason for the ongoing price rise.

 

Soybean prices in Youyi and Baoqing in major producing Heilongjiang province were between RMB4,680-RMB4,720/tonne, up RMB80 from late last week, as soybean processing plants raised their bidding prices to attract volume, said Dalu Futures.

 

Palm oil futures, soyoil futures and soymeal futures settled mostly higher.

 

However, edible oil prices faced downward pressure, as processing plants have too much stocks, said a local trader.

 

Meanwhile, the earthquake in Sichuan province is unlikely to cause a price surge in major commodities, as the government is determined to keep prices under control, said analysts.

 

China's economic planner said late Tuesday that it will closely monitor the prices of major commodities in the areas hit by Monday's earthquake and prevent any price surge through government intervention.

 

The State Administration of Grain also said Tuesday that it will release grain and edible oil reserves to the quake-hit areas and urge processing plants to increase production of grain and edible oil products.

 

The administration must be ready to provide central government reserves and the transportation of grain and edible oil products, it said.

 

Corn futures settled lower.

 

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

Soybeans          Jan 2009           4,505         Up  44           1,278,918

Corn                 Jan 2009           1,958         Dn  11             393,696

Soymeal           Sep 2008           3,594         Up  38             397,634

Palm Oil            Sep 2008         10,720         Up  96               19,094