June 10, 2008
Tuesday: China soybean futures settle up on US weather concerns, crude
China's soybean futures traded on the Dalian Commodity Exchange settled higher Tuesday on U.S. weather concerns and high crude oil prices.
The benchmark January 2009 soybean contract settled RMB68 higher at RMB4,815 a metric tonne, up 1.4%, after trading in the RMB4,757-RMB4,858/tonne range.
"The market is now going to be guided by the weather," said a local analyst.
Fears of heavy storms in the U.S. Midwest amid delayed planting progress compared with previous years helped push prices higher, said analysts, adding the best time for planting is almost over.
There is plenty of room for a further rise in domestic soybean prices as the Chicago Board of Trade counterparts have breached US$14 a bushel, said Yu Haifeng, an analyst at Tianqi Futures.
Last night, CBOT July soybeans settled 5 1/2 cents lower at US$14.52 a bushel, while November soybeans ended 7 1/2 cents higher at US$14.47 a bushel.
Strong crude oil continues to lend support to commodities' prices.
Meanwhile, data on U.S. soybean ending stocks - due to be released by the U.S. Department of Agriculture Tuesday at 1230 GMT - will likely show a drop, as much of the soybean purchase shifted to the U.S. following a farmers' strike in Argentina, Yu said.
However, higher soybean arrivals are likely to pressure the market later as well; some analysts expect China's June soybean imports to reach 4 million tonnes.
Palm oil, soybean oil, soymeal and corn futures settled higher as well.
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 4,815 Up 68 562,710
Corn Jan 2009 1,912 Up 7 358,742
Soymeal Sep 2008 3,919 Up 57 304,244
Palm Oil Sep 2008 10,696 Up 88 19,866
Soyoil Sep 2008 11,464 Up 118 98,960
