The most-actively traded contract for May delivery fell to 32,220 yuan ($4,849) a metric ton on the Shanghai Futures Exchange. The contract has fallen more than 12 percent since Nov. 11, when China said its October consumer prices rose a more-than-forecast 4.4 percent from a year earlier, prompting the government to further tighten the monetary policy.
China will strictly crack down on the use of loan funds in speculation, hoarding and artificially inflating prices of agricultural products, the China Banking Regulatory Commission said on its website yesterday. China’s cabinet said last week it is also increasing grain supplies and may impose temporary price controls after inflation gained the most since September 2008 and food prices climbed 10.1 percent.
“The banking regulator became the latest government agency joining the crackdown on speculation in the agricultural market,” said Forrest Hu, manager at Shanghai Jinhuicheng International Trade Co.
Farm products prices have fallen in the past week since the government’s coordinated efforts to suppress speculation and increase supply by selling government stockpiles of sugar, pork and cooking oil.
Palm oil futures for September delivery on the Dalian Commodity Exchange fell 0.8 percent to 8,488 yuan a ton by the 11:30 a.m. local time break and have dropped almost 12 percent since Nov. 11. Sugar for delivery in the same month dropped 0.2 percent to 6,307 yuan and has fallen 13 percent in the same period.
Rubber also fell because of rising commercial inventories, Hu said. Natural rubber inventoriesrose for an eighth consecutive week to a seven-month high, gaining 705 tons to 60,996 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the exchange said on Nov. 19.
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