October 15, 2007

 

Monday: China soybean futures settle up on increasing demand

 

 

Soybean futures traded on the Dalian Commodity Exchange settled higher Monday on increasing demand for domestic soybeans.

 

The benchmark May 2008 soybean contract settled RMB44 higher at RMB4,230 a metric tonne.

 

Total trading volume rose to 1,028,670 lots from 736,664 lots Friday.

 

One lot is equivalent to 10 tonnes.

 

China imported fewer soybeans in September due to rising soybean prices at the Chicago Board of Trade.

 

The country imported 1.89 million tonnes of soybeans last month, compared with around 3 million tonnes in previous months, preliminary data provided Friday by the General Administration of Customs showed.

 

Demand for domestic soybeans was rising due to the limited imports, helping to support domestic soybean prices, said Shanghai JCI, a grain consultancy firm.

 

Soymeal futures and soyoil futures settled mostly higher.

 

The benchmark May 2008 soymeal contract settled RMB48 higher at RMB3,216/tonne, and the benchmark May 2008 soyoil contract settled RMB30 higher at RMB8,636/tonne.

 

Corn futures also settled higher.

 

The benchmark May 2008 contract settled RMB12 higher at RMB1,651/tonne.

 

Despite ample supply in the near term due to the ongoing harvest and better 2006-07 ending stocks, concerns of an output cut this year will help to support corn prices, said a local analyst with a state-owned company, who pegged support for benchmark May 2008 contract at RMB1,626/tonne.

 

Shanghai JCI expects corn output this year to be between 134 million-135 million tonnes, much lower than the official forecast of 149 million tonnes.

 

Total trading volume for all corn futures rose to 397,310 lots from 383,662 lots Friday.