December 13, 2007
Thursday: China soybean futures settle up on renewed CBOT records
Soybean futures traded on the Dalian Commodity Exchange settled higher Thursday as their counterparts at the Chicago Board of Trade continued their streak of new contract highs overnight.
The benchmark September 2008 soybean contract settled RMB78 higher at RMB4,506 a metric tonne.
Total trading volume declined to 645,362 lots from 656,704 lots Wednesday.
One lot is equivalent to 10 tonnes.
Stable Chinese demand and concerns over a possible fall in production in South America will continue to support soybean prices, said analysts.
Dry weather in South America threatens soybean production, with soybean planting in Argentina erratic so far.
Chinese crushers slowed soybean purchases from abroad last week, with only four-five soybean cargoes booked, mainly for shipment in next January and February, said grain consultancy firm Shanghai JCI.
In the week ended Nov. 30, Chinese companies booked eight to 10 soybean import cargoes, down from nine to 11 cargoes in the preceding week.
However, much of the fall is a result of an earlier jump caused by government demand to fill its reserves, said an analyst with the company.
Pressuring domestic prices is the possible end to the export tax rebate on corn and industrial corn products, according to people familiar with the situation.
The measure is aimed at helping to narrow China's trade surplus and curbing domestic food inflation, which drove on-year consumer price index growth to an 11-year record of 6.9% in November.
Soyoil, palm oil, soymeal and corn futures all settled higher.
Thursday's settlement prices in yuan a metric tonne and volume for all contracts in lots:
Contract Settlement Price Change Volume
Soybean Sep 2008 4,506 Up 78 645,362
Corn May 2008 1,745 Up 10 413,700
Soymeal Sep 2008 3,377 Up 68 1,241,234
Palm Oil May 2008 8,694 Up 160 22,578
Soyoil May 2008 9,648 Up 158 117,060
