June 6, 2008

Friday: China soybean futures settle sharply up tracking CBOT surge

 

 

China's soybean futures traded on the Dalian Commodity Exchange settled sharply higher Friday, following a surge at Chicago Board Of Trade and crude oil gains overnight.

 

The benchmark January 2009 soybean contract settled RMB157, or 3.4%, higher at RMB4,747/tonne after trading in a narrow range of RMB4,734-RMB4,780/tonne.

 

A soybean shortage will be increasingly troublesome if the Argentine farmers' strike doesn't end soon, a local analyst said.

 

However, trading volume was subdued, showing there are concerns about the move of CBOT.

 

"The trend is unclear so far," and traders prefer to take profits, said Cui Ruijuan, an analyst at Guangfa Futures Brokerage.

 

Chinese importers booked 3-4 cargoes of soybeans this week, mostly from Brazil, according to data from commodity consultancy firm Shanghai JCI Friday.

 

High soybean prices in the U.S. kept Chinese importers on the sidelines, while a farmers' strike in Argentina also kept buyers at bay, said Tu Xuan, a JCI analyst.

 

Palm oil, soyoil, soymeal and corn futures all settled higher.

 

Friday'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          4,747          Up 157          497,226

Corn                  Jan 2009         1,905           Up  19          574,810

Soymeal           Sep 2008          3,862          Up 131          237,316

Palm Oil            Sep 2008        10,608          Up 202           17,878

Soyoil               Sep 2008        11,346          Up 296          112,580