May 27, 2008
Tuesday: China soyoil futures rise most in a week on rapeseed's gain
China's soyoil futures traded on the Dalian Commodity Exchange rose the most in a week Tuesday, boosted by gains in rapeseed oil prices.
The benchmark September 2008 soyoil contract increased RMB294, or 2.6%, to RMB11,458 a metric tonne.
Soybean prices were mostly higher, with the benchmark January 2009 soybean contract settling RMB19 higher at RMB4,607/tonne, or up 0.4%.
The surging cash prices of newly harvested rapeseed pushed prices higher.
Rapeseed bidding prices by big processing plants in Hubei province were around RMB4,900/tonne Tuesday, up from RMB4,000-RMB4,800/tonne last week, as farmers held on to their stock expecting prices to rise, said Duan Yujie, a manager at Changjiang Futures in the province.
Rumors that China mightn't cut soyoil import tariff or would delay the announcement also kept buyers away.
Although the rumors may not be true, some traders took the chance to make up for earlier losses, said analysts.
Expectations that prices may rise on the Chicago Board of Trade also helped to support soyoil futures, they added.
But soyoil cash prices were lower and many soybean processing plants have suspended their production due to sluggish demand amid ample stocks, said local traders.
Palm oil futures settled higher, along with soyoil.
Soymeal futures settled lower but corn futures settled higher.
Tuesday'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 4,607 Up 19 707,356
Corn Jan 2009 1,913 Up 15 396,828
Soymeal Sep 2008 3,749 Dn 4 476,614
Palm Oil Sep 2008 10,680 Up 116 16,196
Soyoil Sep 2008 11,458 Up 294 412,752
