May 31, 2004

 

 

Monday: China Soybean Futures Settle Sharply Up After Crushers' Mtg Sat

 

Soybean and soymeal futures traded on China's Dalian Commodity Exchange settled sharply higher Monday, after major Chinese soybean processors met and decided to hold soymeal prices above 2,900 yuan ($1=CNY8.28) a metric ton Saturday, traders said.

 

All nine soybean contracts traded on the exchange settled CNY55-CNY88/ton higher after hitting limit-up during the day.

 

The benchmark September 2004 soybean contract rose CNY55/ton to CNY3,221/ton, after staying limit-up at CNY3,260/ton for most of the day.

 

The benchmark September 2004 soymeal contract rose CNY75/ton to CNY2,715/ton, after hitting limit-up at CNY2,745/ton.

 

Major soybean crushers in China met in Beijing Saturday to discuss the grim situation in the soymeal market, as crushing margins have fallen to a negative CNY1,000/ton in some cases over the past few weeks, traders in Beijing said.

 

They noted that soymeal prices are currently at their lowest levels so far this year.

 

The news immediately triggered aggressive short covering and long buying, pushing all soybean and soymeal contracts sharply higher during the day, dealers said.

 

Trade volume in the Dalian soybean futures market rose to 140,526 lots from Friday's 106,484 lots.

 

Open interest was 315,074 lots, down from 333,694 lots Thursday.

 

One lot is equivalent to 10 tons.