December 28, 2007

 

Friday: China soybean futures settle mostly up on high soyoil prices

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mostly higher Friday on strong soyoil prices, recovering from losses during the session.

 

However, the benchmark September 2008 soybean contract settled RMB8 lower at 4,686 a metric tonne.

 

Domestic soyoil cash prices have surged more than RMB1,000/tonne this week from a week earlier due to strong demand ahead of the Chinese New Year in early February, with the prices of first-grade soyoil nearly at RMB12,000/tonne.

 

Traders said soyoil stocks are falling at many oil processing companies, with some even experiencing shortages.

 

Rising crude oil prices, boosted by lower-than-expected U.S. crude inventories, news about ex-Pakistan Prime Minister Bhutto's assassination and a weak dollar, also helped to push edible oil prices higher.

 

However, there are concerns that edible oil prices may see a downward correction in January, as the government may sell soyoil from state reserves to guarantee market supply.

 

This soyoil was imported earlier without duty, with import costs of between RMB8,000-RMB9,000/tonne.

 

This may put great pressure on the market once it is released, said Xia Tian, an analyst at Yongan Futures.

 

Palm oil futures and soyoil futures settled mostly higher, while soymeal futures and corn futures settled mostly lower.

 

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

 

                 Contract     Settlement Price  Change     Volume

Soybean    Sep 2008      4,686         Dn    8            752,780

Corn         May 2008      1,695         Dn    16           463,960

Soymeal   Sep 2008      3,389          Dn    11           697,506

Palm Oil    May 2008      9,354         Dn    22            18,756

Soyoil       May 2008     10,390         Up    84           239,580