January 6, 2009
Tuesday: China soy futures settle higher on overnight CBOT rise
China's soybean futures traded on the Dalian Commodity Exchange settled higher Tuesday, tracking an overnight rise at the Chicago Board of Trade.
The benchmark May 2009 soybean contract settled RMB38, or 1.1%, higher at RMB3,451/tonne.
CBOT soybeans closed Monday's session near three-month highs, supported by stronger crude oil prices, South American weather concerns and strong export demand, Tianqi Futures said in a note.
The broad recovery in commodities and financial markets, including metals and equities, is also lending support to agricultural products.
Asian markets were mostly higher Tuesday as confidence returned on the back of fiscal rescue hopes.
Analysts in several Asian markets have mooted the prospect of more central bank interest rate cuts, especially with inflation slowing and deflation a possibility in some economies.
As fundamentals take precedence over financial woes, demand and weather will come to the fore as influences on soybean market price trends, said a local trader.
The weather outlook in the coming week will likely be favorable for soybean and corn growth in Argentina, which would curb the increase in soybean prices, analysts said.
Open interest in all soybean contracts rose 47,786 lots to 441,428 lots Tuesday.
Trading volume jumped to 1,493,030 lots from 959,784 lots Monday.
Corn futures settled lower, but soymeal, soyoil and palm oil futures all settled higher.
The tight supply of soymeal led to a buying rush, pushing cash prices higher Tuesday.
Tuesday's settlement prices in yuan a metric tonne for benchmark contracts and volume for all contracts in lots (One lot is equivalent to 10 tonnes):
Contract Settlement Price Change Volume
Soybean May 2009 3,451 Up 38 1,493,030
Corn May 2009 1,548 Dn 5 269,782
Soymeal May 2009 2,587 Up 43 785,026
Palm Oil May 2009 5,356 Up 184 128,726
Soyoil May 2009 6,416 Up 190 703,786
