Follow The Leader: China Raises Commodity Margins As Well

China followed the CME with raising commodity margin maint to help stem the parabolic rise of commodity prices in their markets. i Guess it is a little bit 2 late if you ask me because the damage is done, the damage could be ever worse if North Korea does go to war.

(DowJones Writes) "The Dalian Commodities Exchange will raise the required margins for soybean, soymeal, soyoil, palm oil, corn, linear low-density polyethylene and polyvinyl chloride contracts to 10%, effective Monday, the bourse said in a statement on its website Friday.

The daily limit for price movements will be increased to 6%, it said.

The changes follow government calls to crack down on speculative activity that has been driving price increases, especially in agricultural commodities.

"The move can efficiently curb speculation," said Liu Qing, an analyst at Xinhu Futures Co."

Posted in: China,Commodity margins