May 26, 2008
Monday: China soyoil futures settle up on CBOT soyoil; soymeal surge
China's soyoil futures traded on the Dalian Commodity Exchange settled higher Monday, following the rise on the Chicago Board of Trade Friday.
The benchmark September 2008 soyoil contract settled RMB124, or 1.1% higher at RMB11,164 a metric tonne.
Soybean prices also rose, with the benchmark January 2009 soybean contract settling RMB97, or 2.2% higher at RMB4,588/tonne.
New soybean contracts rose more than the old crops, catching up with earlier gains for the old crops, said analysts.
Soymeal contracts surged due to tight cash supply, said a local trader.
The market-negative news that China may cut its soyoil import tariff to 3% from 9% helped soyoil contracts to give back some of their earlier gains.
China is likely to adjust import and export tariffs of major commodities to rein in inflation, sources said Monday.
China's Ministry of Finance is scheduled to meet this afternoon to discuss a possible cut in duties for soybean oil imports, and may also consider changes in duties on other commodities, said a ministry official, who declined to be named.
Market participants said China will very likely cut the import tax on soyoil to 3% from 9% during the June-September period.
"The possible duty cut is aimed at controlling (domestic) prices" as it will help lower import costs, said Wang Xiaoguang, an analyst at Galaxy Futures.
Meanwhile, traders said a service fee hike for certain soyoil futures transactions at DCE, which was announced last week, had limited impact on prices Monday as the market has digested it.
The service fee imposed on traders who cover soyoil positions opened the same day was doubled to RMB2 per lot effective Monday.
Palm oil futures and corn futures settled higher.
Following are 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 4,588 Up 97 756,272
Corn Jan 2009 1,898 Up 11 703,596
Soymeal Sep 2008 3,753 Up 102 560,890
Palm Oil Sep 2008 10,564 Up 160 14,034
Soyoil Sep 2008 11,164 Up 124 208,486