July 31, 2008
Thursday: China soybean futures settle higher tracking gains on CBOT
China's soybean futures traded on the Dalian Commodity Exchange settled higher Thursday, tracking gains on the Chicago Board of Trade overnight.
The benchmark January 2009 contract settled RMB39 higher at RMB4,547 a metric tonne, or up 0.9%, after trading in a RMB4,533-RMB4,568/tonne range.
Analysts said soybean may have seen the bottom after the recent big fall, which dragged down the benchmark contract from around RMB5,200/tonne early this month.
The market is unlikely to see big ups and downs in the near term, said a local trader with a big feedmeal company.
Weather uncertainties in early August, a delayed growth of the crop in major U.S. producing areas as well as the tight global supply lend support to soybean.
The recent tumble in soybean and corn have also boosted the demand for these crops as biofuels, which will help tame the fall, said Shen Enxian, analyst at China International Futures Co.
He expects the CBOT benchmark November soybean contract to be strongly supported at US$13.50 per bushel; it ended 14 cents higher at US$14.05/bushel Wednesday.
Soybean oil, palm oil and soybean meal futures settled higher, while corn futures settled lower.
The overnight gains in crude oil prices on the New York Mercantile Exchange helped support vegetable oil prices on the DCE.
Analyst expect the soy oil benchmark January 2009 contract to consolidate in the near term around RMB10,000/tonne, a key psychological support, with crude oil prices likely to support vegetable oils.
Thursday'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 4,547 Up 39 627,492
Corn Jan 2009 1,839 Dn 6 378,212
Soy Meal Jan 2009 3,750 Up 23 448,534
Palm Oil Sep 2008 8,804 Up 132 34,856
Soy Oil Jan 2009 10,120 Up 144 251,120
