July 9, 2008

 

Wednesday: China soybean futures settle up; fundamentals seen unchanged

 

 

China's soybean futures traded on the Dalian Commodity Exchange reversed losses Wednesday on expectations of supplies lagging demand even as weather forecasts in producing areas in the U.S. improved.

 

The benchmark January 2009 soybean contract settled RMB30 higher at RMB4,950/tonne, or up 0.6%.

 

The recent fall prompted some to buy, with long position holders expecting the fall to be brief, and weather in the U.S. soybean producing areas remaining in focus ahead of the harvest.

 

The benchmark contract opened higher, but trimmed the gains in later session, pressured by falling soymeal cash prices and weak soyoil cash prices.

 

Soymeal cash prices in many areas have fallen by more than RMB100/tonne this week as feedmeal companies stayed on sidelines on record high prices.

 

Good weather in the U.S., a stronger dollar and the drop in crude oil prices on the New York Mercantile Exchange overnight helped lessen the upward momentum in soybean prices, said Cui Ruijuan, an analyst at Guangfa Futures Brokerage.

 

Soyoil futures, palm oil futures, and soymeal futures settled higher, while corn futures settled slightly lower.

 

Although the cash corn stock is tight, corn stock at the DCE is at a historical high, said Li Dongji, an analyst at Guotai Junan Futures Co.

 

Wednesday'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           4,950          Up  30           575,466

Corn                 Jan 2009           1,881          Dn   2           276,606

Soymeal           Jan 2009           3,945          Up  14        1,367,222

Palm Oil           Sep 2008         10,488          Up  46             23,618

Soyoil               Jan 2009         11,604          Up  90           103,002
   

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