May 30, 2008
Friday: China soyoil futures settle sharply down on CBOT, crude tumble
China's soyoil futures traded on the Dalian Commodity Exchange settled sharply lower Friday, tracking the tumble at the Chicago Board of Trade and crude oil prices overnight.
The benchmark September 2008 soyoil contract shed RMB442, or 3.9%, to RMB10,888 a metric tonne.
Soybean prices were sharply lower. The benchmark January 2009 soybean contract settled RMB106, or 2.3%, lower at RMB4,463/tonne.
A warning from the U.S. Commodity Futures Trading Commission that it would tighten oversight on energy trading sparked fears that the CFTC could take action to limit the role of speculative funds in commodities markets.
Some analysts have said the surge in crude oil prices this year is more attributable to speculation than fundamentals.
Meanwhile, an improved outlook for the U.S. economy supported the dollar, which cast a pall over the overall commodities market, said a local analyst.
The dollar strengthened Thursday after U.S. growth data were revised higher, suggesting underlying strength in the economy despite the ravages of the subprime mortgage crisis.
However, Zhao Qiang, a manager at Tianqi Futures, said there was no panic selling in soybean futures, as major long position holders closed out positions early in the session and then opened new ones later.
"It's only a technical correction, and soybean prices are likely to consolidate in the near term," he said.
Palm oil, corn and soymeal futures all settled 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 Jan 2009 4,463 Dn 106 724,648
Corn Jan 2009 1,876 Dn 18 654,518
Soymeal Sep 2008 3,673 Dn 61 337,856
Palm Oil Sep 2008 10,324 Dn 276 10,792
Soyoil Sep 2008 10,888 Dn 442 255,072
