November 12, 2007
Monday: China soybean futures settle up on CBOT surge; palm oil down
Soybean futures traded on the Dalian Commodity Exchange settled higher Monday, tracking Friday's climb to new contract highs on the Chicago Board of Trade.
The benchmark May 2008 soybean contract settled RMB22 higher at RMB4,513 a metric tonne.
Total trading volume declined to 684,428 lots from 715,706 lots Friday. One lot is equivalent to 10 tonnes.
November soybeans on CBOT settled 15 cents higher Friday at $10.43 a bushel and January soybeans ended 14 3/4 cents higher at $10.56.
The U.S. Department of Agriculture pegged 2007-08 soybean production at 2.594 billion bushels versus the average of trade estimates at 2.606 billion.
Soybean yield is projected at 41.3 bushels an acre, down 1/10 of a bushel from the October yield. The USDA projected U.S. 2007-08 soybean ending stocks at 210 million bushels, down 5 million from the October forecast and below the average of trade estimates at 213 million bushels.
Argentina's export tax hike on grains and subproducts also helped support sentiment in the grain and oilseeds sectors as the market expected higher grain and oil prices due to rising import costs.
The government raised the export tax on soy to 35% from 27.5% and the tax on soyoil to 32% from 24%. Wheat export taxes were upped to 28% from 20%, while the tax on corn rose to 25% from 20%.
Argentina is one of the main suppliers of soybeans to China and the biggest supplier of China's soyoil.
Palm oil futures settled lower but soyoil futures settled mostly higher.
The benchmark May 2008 palm oil contract settled at RMB8,852/tonne, down RMB50 from Friday.
Total trading volume for all palm oil futures declined to 2,776 lots from 4,974 lots Friday.
The benchmark May 2008 soyoil contract settled RMB30 higher at RMB9,404/tonne.
Soymeal futures settled up.
The benchmark May 2008 soymeal contract settled RMB41 higher at RMB3,408/tonne.
Corn futures settled slightly higher.
The benchmark May 2008 contract settled RMB2 higher at RMB1,776/tonne.
Total trading volume for all corn futures rose to 700,708 lots from 688,022 lots Friday.