June 3, 2008

 

Tuesday: China soybean futures settle modestly up on low cash supply

 

 

China's soybean futures traded on the Dalian Commodity Exchange settled slightly higher Tuesday tracking limited cash supply.

 

The benchmark January 2009 soybean contract settled RMB8 higher at RMB4,503/tonne, or up 0.2%, after trading between RMB4,475/tonne and RMB4,543/tonne.

 

Soybean prices opened lower but managed to break into positive territory around noon, in line with prices on the Chicago Board of Trade's electronic trading in Asian hours.

 

The limited domestic soybean supply ahead of the harvest season in September has been supporting prices.

 

High import prices helped to support domestic prices amid a rangebound movement, said Huang Xiao, a manager at Capital Futures.

 

The lack of fresh news and unclear trading signs at the CBOT kept DCE soybeans trading within a tight range.

 

The benchmark contract will likely trade within a range of RMB300 in the near term, said Beite Futures Co.'s analyst Zeng Xuezhou.

 

High soymeal prices, due to a tight cashsupply, also supported soybean prices.

 

Most crushers have no soymeal stocks while traders are reluctant to sell, according to a note from the China National Grain and Oils Information Center.

 

Palm oil, soybean oil and corn futures settled mostly slightly higher, while soy meal futures settled mixed.

 

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         4,503            Up   8          444,880

Corn                 Jan 2009          1,889           Up   4          351,076

Soymeal           Sep 2008         3,726            Dn   4          317,022

Palm Oil            Sep 2008        10,426           Up   4           11,010

Soyoil               Sep 2008        10,980           Up   8          162,664