December 8, 2008
Monday: China soy futures settle up on hopes over economic stimulus
Soybean futures traded on the Dalian Commodity Exchange settled higher Monday on hopes that the government will launch more stimulus plans to boost the economy.
The benchmark May 2009 soybean contract settled RMB44 higher at RMB2,952 a metric tonne.
The market expects Beijing to release additional economic stimulus measures during the three-day Central Economic Work Conference, which kicked off today.
Financial markets in China, from metals to stock markets, rose on such hope, said analysts.
The share market's benchmark Shanghai composite index ended the Monday session 3.6% higher.
A rebound in crude oil prices in Asian trading also helped sentiment in the commodities market.
But some analysts said it's just psychological support, which came just in time after commodities tumbled last week.
"The (favorable policies) that should be launched were already out, and (I) don't expect any particular policy to boost the commodities market to be issued (during the conference)," said Liu Xinghua, an analyst at Great Wall Futures Co.
He said the rise is likely to last for just one or two sessions as the global economic recession continues.
Open interest for all soybean contracts fell 70,628 lots to 606,046 lots Monday, showing that traders were covering their short positions to cash in.
Trading was very active, with volume jumping to 1,520,458 lots from 283,792 lots Friday.
Corn futures, soymeal futures, palm oil futures and soyoil futures all settled higher.
The benchmark palm oil futures contract touched limit-up toward the closing bell.
Monday's settlement prices in yuan a metric tonne for benchmark contracts and volume for all contracts in lots (One lot is equivalent to 10 tonnes):
Contract Settlement Price Change Volume
Soybean May 2009 2,952 Up 44 1,520,458
Corn May 2009 1,478 Up 10 419,090
Soymeal May 2009 2,173 Up 39 717,356
Palm Oil May 2009 4,612 Up 160 86,640
Soyoil May 2009 5,748 Up 102 554,646