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At 11:00 am America Eastern Standard Time on January 12 (1:00 am Beijing Time on January 13), the United States Department of Agriculture published the “World Agricultural Supply and Demand Estimates Report for January”, adjusting up the estimates for the soybean yields. Upon release of the data, the prices of the after-hours products of Soybean Meal, Soybean Oil and No. 1 Soybeans on Dalian Commodity Exchange (DCE) declined immediately in trading and then held steady. Despite the stable operation during the whole night and day trading sessions, the overall situation showed the trend of price decline as the market fully reflected and absorbed the information of the overseas markets as well as tested for the first time the function of the soybean-related products on the after-hours trading in transferring the overnight risks. According to the above-mentioned report, the per unit yield of the soybeans in the U.S. and the soybean yields in Brazil and Argentina in South America will exceed the estimates as the market expected, the soybean yields across the world are expected to reach 314 million tons, a new record high and an increase of 1.6 million tons compared with the estimate in the last month, and the high yields of soybeans worldwide are a foregone conclusion.
As the after-hours trading of DCE fully covered the period of the announcement of the report, the prices of DCE products of Soybean Meal, Soybean Oil and No. 1 Soybeans immediately absorbed the price fluctuations on foreign markets and gave response rapidly. At the end of the after-hours trading on the night, the dominant soybean meal futures contract 1505 recorded the latest price of RMB 2,780 / ton, a decrease of 1.77%, with the latest price of the dominant soybean oil futures contract 1505 closing at RMB 5,690 / ton, down by 0.8%, and that of the dominant No. 1 Soybeans futures contract 1505 reporting RMB 4,483 / ton, falling by 0.4%. The after-hours trading recorded a unilateral trading volume of 525,000 contracts for soybean meal, 68,000 contracts for soybean oil, and 20,000 contracts for No. 1 Soybeans, up by 329,000 contracts, 19,000 contracts, and 5,000 contracts respectively from the previous trading day.
A market analyst concluded that the performance of the relevant futures products on the night enabled market particpants further understand the function of the after-hours products in transferring the overnight risks.
