June 2, 2008

 

Monday: China soybean futures settle up on CBOT; not much room to move

 

 

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

 

The benchmark January 2009 soybean contract settled RMB32 or 0.7% higher at RMB4,495 a metric tonne, after trading between RMB4,468-RMB4,518/tonne.

 

An unusually large gap between old crop and new crop contracts has fully reflected the fundamentals of domestic soybeans, leaving little room for price to move in either direction, said Wang Hongbo, an analyst at Sun Futures Co.

 

A limited supply of domestic soybeans has pushed up August contracts, while analysts expected supply to be ample in the new crop year.

 

Global supply concerns are expected to keep prices high, but eCBOT soybean prices were down slightly on Monday.

 

Dalu Futures suggested that investors trade for the very short term, within single sessions.

 

Palm oil futures, soyoil futures, corn futures and soymeal futures all settled higher.

 

Tight cash supplies of soymeal keep futures prices at high levels, but there are no signs that funds have been flowing into the contracts in large volume.

 

Corn prices are under pressure as the wheat harvest is well on track, and the wheat can substitute for corn in feedmeals, said analysts.

 

Monday'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          4,495          Up  32           420,428

Corn                 Jan 2009          1,885           Up  9            255,658

Soymeal           Sep 2008          3,730          Up  57           275,992

Palm Oil            Sep 2008        10,422          Up  98             10,376

Soyoil               Sep 2008        10,972          Up  84           165,638