Monday: China soymeal futures settle sharply up on tight supply
China's soybean meal futures traded on the Dalian Commodity Exchange settled sharply higher Monday, leading the gains of soybean and soy products on tight cash supply.
The benchmark September 2008 soy meal contract settled RMB117, or 2.9%, higher at RMB4,169 a metric tonne.
The benchmark January 2009 soybean contract settled RMB78, or 1.6%, higher at RMB5,044/tonne, after trading between RMB5,000/tonne and RMB5,074/tonne.
Soy meal cash prices hit record high levels on dwindling supply and low stocks at processing plants.
Soybean processing plants aren't making much profits on high import costs and weak soybean oil demand, and they are willing to hike soy meal prices to make up for any losses from soy oil, said traders.
The weak soy oil prices also supported soy meal prices.
Meanwhile, floods in midwest U.S. have raised concerns soybean prices will remain strong on reduced output, said a local trader at a big feedmeal company.
Soy oil demand remained weak, with imports falling sharply in May.
China imported 110,000 tonnes of soy oil in May, down 55.6% from a year earlier, according to preliminary data issued by the General Administration of Customs Monday.
The country imported a total of 1.13 million tonnes of soy oil in the first five months, up 7.7%, it said.
High global prices also damped demand. Soy oil imports in June are unlikely to pick up, said Xiao Jun, an analyst at Shanghai JCI, a commodity consultancy firm.
Soy oil, palm oil and corn futures settled higher.
Monday'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 5,044 Up 78 596,546
Corn Jan 2009 1,923 Up 12 520,048
Soymeal Sep 2008 4,169 Up 117 525,466
Palm Oil Sep 2008 11,130 Up 64 19,790
Soyoil Sep 2008 12,306 Up 102 273,372
