August 25, 2008

 

Monday: China soybean futures settle up a bit on soymeal price rise

   

 

China's soybean futures traded on the Dalian Commodity Exchange settled slightly higher Monday, supported by gains in soymeal prices.

 

The benchmark January 2009 soybean contract settled RMB15 higher at RMB4,327/tonne, or 0.3%, after trading in a range of RMB4,293-RMB4,356/tonne.

 

Soybean prices opened lower, along with the fall at CBOT Friday, but edged slightly higher during the session.

 

Soymeal cash prices in many areas were RMB30-RMB50/tonne higher Monday compared with the weekend. A local feedmeal trader said although feedmeal demand remains weak, limited soymeal stocks at processing plants helped support prices.

 

The big fall in soymeal prices earlier kept many consumers on the sidelines on expectations of a further fall in the rates.

 

But, possibility of an increase in soybean supplies capped gains in a buyer's market.

 

The harvest season is coming in September, and higher soyoil and soymeal stocks in Argentina may pressure global prices, said Tianqi Futures in its note.

 

Soyoil futures and palm oil futures settled mostly lower, while soymeal futures settled higher on rising cash prices.

 

Corn futures settled mixed.

 

Large inventories in major palm oil producing countries plagued palm oil prices.

 

Southeast Asia's total palm oil stocks are currently around 4.5 million tonnes, and the outlook for output through the rest of the year and in 2009 is very strong, said M.R. Chandran, senior group advisor at Platinum Energy, a palm oil consultancy.

 

Malaysia's high production is likely to continue, with August palm oil output expected at 1.6 million tonnes and September-December output projected at 6.2 million tonnes, which would translate into record output of 17.6 million tonnes in 2008, he added.

 

Monday's settlement prices in yuan a metric tonne and volume for all contracts in lots (One lot is equivalent to 10 tonnes):

Soybean               Jan 2009             4,327               Up  15           996,456

Corn                    Jan 2009              1,731               Dn   2           289,696

Soymeal               Jan 2009              3,659               Up  82        1,009,402

Palm Oil                Jan 2009              7,800               Dn 222           28,796