October 29, 2008
Wednesday: China soybean futures settle mostly up on e-CBOT, cash gains
Soybean futures traded on the Dalian Commodity Exchange settled mostly higher Wednesday, thanks to gains made during electronic trading at the Chicago Board of Trade in Asian hours and rising domestic cash prices.
The benchmark January 2009 soybean contract settled RMB24 higher at RMB3,290 a metric tonne, after trading between RMB3,244/tonne and RMB3,342/tonne.
Following steep losses over the past few months, soy futures seem to be stabilizing somewhat this week, and with the help of rising cash values and relatively stable outside markets, there was some tentative buying in the session, said Liu Xinghua, an analyst at Great Wall Futures.
Soybean prices in the major producing regions in the northeast have been rising steadily since the beginning of last week after the government said it was buying for state reserves at a price higher than cash prices at the time.
"It was oversold, and people have realized it's unwise to drive prices further down at least for now," said Han Yan, a senior analyst at Dalu Futures, tipping resistance for the benchmark around RMB3,450/tonne.
Soymeal and soyoil futures also settled mostly higher, in line with soybean gains.
"Soyoil suffered most due to the tumble of crude oil prices in the past few weeks, but this also means if crude stabilizes, it may have a chance to jump," Han said.
Corn futures settled almost unchanged.
As long as purchases by the state reserves at the government-set price continues, cash values will probably continue lending support to futures, analysts said.
"But certainly other markets, including global equities markets, and U.S. dollar movements will continue impacting commodities as they have done in the past few weeks," Liu said.
Wednesday's settlement prices in yuan a metric tonne and volume for all contracts in lots:
Contract settlement Price Change Volume
Soybeans May 2009 3,290 Up 24 1,588,784
Corn May 2009 1,657 Dn 1 212,746
Soymeal Jan 2009 2,825 Dn 3 922,040
Palm Oil Jan 2009 4,388 Dn 28 96,184
Soyoil Jan 2009 6,150 Up 24 572,166