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Kevin on CNN ahead of Gustav! www.kerralert.com
Plus…..My former RTA members who are long bean oil, may find this story from Bloomberg interesting. Read on:
Dalian Soybeans Advance as Festival Boosts Vegetable Oil Demand
Courtesy of bloomberg.com
By William Bi
“Sept. 1 (Bloomberg) — Soybeans climbed in Dalian on expectation that demand for vegetable oil in China, the world’s biggest consumer, will increase ahead of holidays, spurring processors to raise crushing. Soybean oil also gained.
Prices advanced before the mid-autumn festival this month, when Chinese people exchange gifts of vegetable-oil-rich moon cakes and bottles of cooking oil. Regional vegetable oil prices for immediate delivery gained between 100 yuan to 200 yuan ($15- $30) a metric ton today, Tommy Xiao, analyst at Shanghai JC Intelligence Co., said.
“Demand will typically strengthen at this time of year,” and that’s helping reduce some excess domestic supplies of soybean oil, said Nie Ben, manager at Shanghai Mainland Futures Co. by phone from Dalian. Mid-autumn festival is celebrated on Sept. 15. It is followed at the end of the month by a week-long National Day holiday.
Soybeans for January delivery on the Dalian Commodity Exchange gained 74 yuan, or 1.7 percent, to close at 4,337 yuan a ton. January-delivery soybean oil rose 158 yuan a ton, or 1.7 percent, to 9,278 yuan.
The Chicago Board of Trade is closed today for the U.S. Labor Day holiday.
Zen-Noh, Japan’s largest corn buyer, suspended the operation of its grain export facility in the U.S. Gulf as Hurricane Gustav approaches the region, threatening shipments from the world’s biggest exporter. China currently imports little corn from the U.S., according to customs data.
“I don’t think it’ll have much of an impact” on U.S. soybean exports, said Phil Laney, China country director of the American Soybean Association’s international marketing. Shutting the elevators is normal, and there are few soybeans being handled because most crops haven’t been harvested, he said.”
Today’s gain wasn’t likely related to a gain in the crude oil price, which jumped as much as 2.2 percent to $118 a barrel, said Wang Lin, manager at Cofco Futures Co. in Dalian. “The domestic market is waiting for more information from the U.S. market,” when trading resumes tomorrow, he said.
To contact the reporter on this story: William Bi in Beijing at
