February 4, 2008

 

Monday: China soybean futures settle up on CBOT gains Friday; corn higher

 

 

Soybean futures traded on the Dalian Commodity Exchange settled higher Monday, tracking gains on the Chicago Board of Trade Friday.

 

Analysts said the heavy snowfall in southern, eastern, and central China is a positive factor for agricultural prices in the short term, given the concerns about less production, but in the longer run, less demand could complicate the story.

 

The benchmark September 2008 soybean contract rose RMB40 to settle at RMB4,760 a metric tonne, after trading between RMB4,734/tonne and RMB4,783/tonne.

 

"In the short term, the snowfall, as has impacted transport, is lending support to agricultural prices, sending a spillover effect to soy and soy products," said Gao Yanrong, an analyst at Dalu Futures.

 

"But in the long run, given the reports that lots of pigs have died because of the freezing weather in the south, less demand for feedmeal might cap soy prices," Gao said.

 

Soymeal and soyoil futures also settled mostly higher, along with soybean futures.

 

Corn futures settled up on short covering, as speculators liquidate positions ahead of the long holiday.

 

Chinese markets will be closed Feb. 6-12 for the Chinese New Year holiday.

 

Monday's settlement prices in yuan a metric tonne and volume for all contracts in lots:

 

                 Contract       Price      Change     Volume

Soybeans   Sep 2008      4,760      Up  40     403,248

Soymeal    Sep 2008      3,314      Up  19     327,740

Soyoil        May 2008     11,028     Dn  12    175,166

Corn          May 2008      1,773      Up  21    260,398

Palm Oil     May 2008      9,836      Dn  14     34,818