Commodity futures see modest rise as survey points to strong output

By Yu Xi in Shanghai Source:Global Times Published: 2013-11-24 23:28:01

Chinese commodity futures generally gained Friday after HSBC Holdings Plc released data showing an increase in activity in China's manufacturing sector in November, albeit at a slower pace.

Copper for delivery in February climbed by 0.72 percent on the Shanghai Futures Exchange Friday, closing at 50,470 yuan ($8,283.14) per ton, up 1.02 percent week-on-week. Trading volumes shrank by 45,214 lots Friday compared to Thursday.

HSBC's preliminary manufacturing Purchasing Managers' Index for November saw a drop to 50.4 from a seven-month high of 50.9 in October, due to decreasing exports and weaker demand in China. However, the subindex for output increased to 51.3 in November from 51.1 in October, hitting an eight-month high.

In contrast to the decreasing export performance in November around the country, the production index suggested that "Chinese industry continues to carry strong underlying momentum," according to a report e-mailed to the Global Times Friday by Australian bank ANZ.

But there are still concerns over adequate supply of copper and weak demand from downstream companies as many firms are facing a cash squeeze at the end of the year, according to a report by Xinhua News Agency Friday. The report said the slight rise in copper futures is not likely to last long.

Meanwhile, agricultural commodities futures performed more strongly on the Chicago Board of Trade, with soybeans and corn the best performers.

The sharp rise in soybean futures helped soybeans for delivery in May on the Dalian Commodity Exchange (DCE) rise by 0.18 percent to close at 4,440 yuan per ton Friday.

But analysts said that predictions of good weather for the growing of crops in South America might restrict the earnings of soy products on the DCE, according to Xinhua News Agency Friday.



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