October 29, 2007
Monday: China soybean futures settle up on palm oil futures debut
Soybean futures traded on the Dalian Commodity Exchange settled higher Monday on the strong debut of palm oil futures.
The benchmark May 2008 soybean contract settled RMB68 higher at 4,441 a metric tonne.
Total trading volume rose to 885,564 lots from 838,814 Friday. One lot is equivalent to 10 tonnes.
China's newly-listed palm oil futures contracts hit limit-up on their debut on the Dalian Commodity Exchange Monday, signaling strong demand for the product.
The most heavily traded May 2008 palm oil contract closed the session at RMB8,424/tonne, up 8% from the benchmark price of RMB7,800/tonne set by the exchange before the session opened.
The strong debut "helped support overall agricultural products prices," said Zeng Xuezhou, a trader at Beite Futures Co.
But the surge in prices increased downward risk for agricultural prices, which are now much stronger than the fundamentals, he added.
The trading volume for palm oil futures was light, as traders were reluctant to sell after most palm oil contracts hit 8% limit-up at RMB8,424/tonne, on expected higher prices due to strong domestic demand.
Total trading volume for all palm oil futures was 4,042 lots.
Soymeal futures and soyoil futures settled higher.
The benchmark May 2008 soymeal contract settled RMB47 higher at RMB3,344/tonne and the benchmark May 2008 soyoil contract settled RMB154 higher at RMB8,936/tonne.
A trader at a state-owned company said soyoil futures are likely to be continuously supported by strong crude oil prices and CBOT soyoil prices in the short term.
Corn futures settled sharply higher, with most contracts hitting limit-up during the session.
The benchmark May 2008 contract settled RMB40 higher at RMB1,691/tonne.
Zhang Yifan, a trader at COFCO Ltd., said record-high crude oil prices caused concerns over global inflation and money flew into corn, whose growth has been lagging behind other agricultural products.
Total trading volume for all corn futures rose to 1,202,988 lots from 340,130 lots Friday.