Home · Weather · Forum · Learning Chinese · Jobs · Shopping
Search This Site
China | International | Business | Government | Environment | Olympics/Sports | Travel/Living in China | Culture/Entertainment | Books & Magazines | Health
Home / Business / Finance Tools: Save | Print | E-mail | Most Read | Comment
Palm oil futures a hit
Adjust font size:

The second agricultural futures contract introduced this year opened yesterday on the Dalian Commodity Exchange (DCE) with a bang.


Five out of six palm oil futures contracts surged to the daily allowable limits on the first trading day on the DCE.


Contracts for delivery in January, February, March and September soared to the daily allowable limit of 8 percent to 8,424 yuan per ton from their opening prices in the early hours of trading and stayed there for the rest of the day.


Contracts for delivery in April rose 7.95 percent, just below the limit, to close at 8,420 yuan per ton.


The combined turnover of all the six contracts totaled 340 million yuan. Analysts said the trading would have been more active if the prices of the contracts were not artificially capped by the daily limits.


They said traders' anticipation of an upward trend of palm oil prices in the spot market helped the futures market perform well in the first day of trading. What's more, the new tool for hedging against fluctuating prices of a major commodity used in a wide variety of processed foods has apparently attracted the interest of many traders and food processors, analysts said.


The spot price of palm oil quoted yesterday on the Huangpu seaport in Guangzhou, the main entry point for palm oil imports from Malaysia and other producers in Southeast Asia, reached 8,350 yuan per ton, up 4.3 percent from last week.


Industry experts said the continuous rise of other edible oil prices in the domestic market also helps support the futures prices of palm oil. The most actively traded soybean oil futures contract on the DCE for delivery in May 2008 yesterday climbed 1.84 percent, or 162 yuan, to 8,944 yuan per ton.


On Zhengzhou Commodity Exchange, the most actively traded rapeseed oil futures contract for delivery in January 2008 climbed 1.23 percent, or 120 yuan, to close at 9,880 yuan per ton.


Lin Hui, an analyst at a futures company of Orient Securities, said: "As one of the major edible oil products, palm oil futures will attract a large number of traders to hedge against potential risks resulting from the price fluctuation of palm oil.


The price of palm oil in the domestic market in the first six months of 2007 rose 50.4 percent to between 7,000 and 8,200 yuan per ton from the same period last year.


(China Daily October 30, 2007)


Tools: Save | Print | E-mail | Most Read

Username   Password   Anonymous
China Archives
Related >>
- Palm oil futures to debut on October 29
- China to trade palm oil futures
Most Viewed >>
-China set to hit the brakes on rising yuan
-Power to resume shortly in worst-hit area by snow
-Macao's gaming market expands further
-Online operators are on top of the game
-Insurance firms set to stump up billions

May 15-17, Shanghai Women's Forum Asia
Dec. 12-13 Beijing China-US Strategic Economic Dialogue
Nov. 27-28 Beijing China-EU Summit

- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?
SiteMap | About Us | RSS | Newsletter | Feedback

Copyright © All Rights Reserved E-mail: Tel: 86-10-88828000 京ICP证 040089号