July 15, 2008

 

Tuesday: China soybean futures settle higher on technical buying

 

 

China's soybean futures traded on the Dalian Commodity Exchange settled higher Tuesday on technical buying.

 

The benchmark January 2009 soybean contract settled RMB22 higher at RMB4,963 a metric tonne, or up 0.4%, after trading in the RMB4,928-RMB4,995/tonne range.

 

The soybean contracts remained in upward trend technically, and the peak hasn't been seen yet, said Zhang Chunjiang, an analyst at China International Futures Co., adding any tumble in prices may attract short-term bargain hunting.

 

Analysts expect the soybean contracts to consolidate around the current high levels amid the growing season.

 

An improved weather outlook in the major growing areas of the U.S. Midwest helped cap the gains in prices.

 

China imported 170,000 tonnes of soybean oil in June, up 108% on year, according to preliminary data issued by the General Administration of Customs Tuesday.

 

The country imported 1.3 million tonnes of soy oil in the first half of the year, up 15% on year, it added.

 

Analysts said the imports could have surged in June due to the government's purchase for reserves.

 

Companies are unlikely to have bought such large volumes as imported oil prices are higher than domestic ones, said Xiao Jun at commodity consultancy firm Shanghai JCI.

 

Soy oil, palm oil, soybean meal and corn futures settled higher.

 

Tuesday'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           4,963          Up  22           661,226

Corn                 Jan 2009          1,908          Up  10            468,704

Soymeal           Jan 2009           3,991          Up  29           904,526

Palm Oil           Sep 2008         10,402          Up  20             11,322

Soyoil               Jan 2009         11,496          Up  40           151,900