October 26, 2007

 

Friday: China soybean futures settle at new high on CBOT rise

 

 

Soybean futures traded on the Dalian Commodity Exchange settled at new record prices Friday on higher soybean prices at Chicago Board of Trade overnight.

 

The benchmark May 2008 soybean contract settled RMB71 higher at 4,373 a metric tonne.

 

Total trading volume declined to 838,814 lots from 1,012,584 Thursday. One lot is equivalent to 10 tonnes.

 

Despite concerns about the government's tightening monetary polices aimed at curbing high inflation, rising soymeal and soyoil prices have supported soybean prices.

 

The downstream sectors, including the feedmeal sector, can accept rising soybean prices due to the high meat prices this year, said Pei Yong, research manager at Chinatex Grains & Oils Import & Export Corp.

 

Soybean imports in each of the last three months of 2007 will stay strong around 3 million tonnes, according to traders.

 

Domestic farmers grew more soybean for direct consumption this year rather than for processing soyoil due to high profits, leaving less domestic soybean available for making soyoil, said analysts.

 

Soymeal futures and soyoil futures settled higher.

 

The benchmark May 2008 soymeal contract settled RMB45 higher at RMB3,297/tonne, and the benchmark May 2008 soyoil contract settled RMB82 higher at RMB8,782/tonne.

 

Corn futures settled mostly higher. The benchmark May 2008 contract settled RMB10 higher at RMB1,651/tonne.

 

Total trading volume for all corn futures rose to 340,130 lots from 335,810 lots Thursday.