China's soyameal futures jumped as much as 3.2 percent on Wednesday amid growing fears that an escalating trade showdown between the United States and China could impact soyabean prices. The January 2019 contract traded on the Dalian Commodity Exchange rose as much as 3.2 percent to 3,241 yuan ($515.20) per tonne.
"The domestic market is worried about trade war issues," said Yang Linqin, an analyst at Cofco Futures. "Before the September contract, a lot of cargoes have already been bought so the impact on next year's contracts is bigger." The most-active contract for September 2018 delivery was up 1.08 percent to 3,189 yuan per tonne. Chinese soyameal futures last week rose to their highest since July 2016, tracking US soya after bullish plantings forecast.
Chinese soyameal prices are now being further supported by this week's trade announcements by Beijing and Washington, said analysts. The Trump administration said late on Tuesday it was targeting tariffs on 1,300 Chinese goods, or about $50 billion of estimated 2018 imports. Beijing said will retaliate, which could include US soyabeans.
Tariffs on US soyabeans would push up costs for crushers that turn the beans into soyameal for animal feed for China's livestock industry. The most-active soyabean futures on DCE for delivery in May also rose 1.83 percent by midday to 3,845 yuan per tonne, their highest level for the most-active contract since November last year.
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