September 23, 2008
Tuesday: China soybean futures settle up on CBOT gains; palm oil surges
China's soybean futures traded on the Dalian Commodity Exchange settled higher Tuesday, supported by high overnight gains on the Chicago Board of Trade.
The benchmark January 2009 soybean contract settled RMB80 higher at RMB4,049 a metric tonne, up 2.0%, after trading in a RMB4,024-RMB4,107/tonne range.
The U.S. government's bailout plan has triggered inflation expectations, helping to push up CBOT prices.
But as the financial crisis has heavily impacted the U.S. economy and will hit its consumption and production in the near term, the U.S. commodities market is likely to consolidate for a while, said Tianqi Futures.
Meanwhile, the warm temperature outlook in major soybean producing areas in the U.S. is in favor of crop progress and maturation going into the end of the month, resulting in less support for higher prices.
Open interest in all soybean contracts fell 9,202 lots to 431,456 lots Tuesday.
Corn futures settled lower, while soybean meal and soybean oil futures settled higher; palm oil futures settled mixed.
But the benchmark palm oil futures touched 5% limit-up during the session.
Cash soy oil prices rose RMB500-RMB600/tonne from Friday, as the coming long National Day holiday in early October boosted consumption.
Contract Settlement Price Change Volume
Soybean Jan 2009 4,049 Up 80 1,391,712
Corn May 2009 1,778 Dn 6 339,794
Soymeal Jan 2009 3,452 Up 26 1,017,226
Palm Oil Jan 2009 6,454 Up 264 126,358
Soyoil Jan 2009 8,358 Up 216 742,716