January 19, 2009

China's soybean futures traded on the Dalian Commodity Exchange settled higher in thin trading volume Monday, tracking gains on the Chicago Board of Trade on Friday.

 

The benchmark September 2009 soybean contract gained RMB11, or 0.3%, to settle at RMB3,460 a metric tonne.

 

Analysts said soybean prices will continue in a consolidation pattern in coming sessions with the market in an ahead-of-holidays mood. China's Lunar New Year holidays begin Jan. 30.

 

With trading volume shrinking for four consecutive sessions, "most market participants have adopted a wait-and-see stance before the holiday," said Wang Xiaoguang, an analyst with Galaxy Futures.

 

Analysts said short covering was also a feature of Monday's trading, soybeans will likely retain some upward momentum due to concerns about dry weather in South America.

 

However, Wang said, "Basically, the market won't have much going on these days unless CBOT has something new popping up."

 

Trading volume in all soybean contracts declined to 352,944 lots from 422,118 lots Friday.

 

Open interest rose 2,700 lots to 339,126 lots Monday.

 

Corn futures and soymeal futures settled higher while soyoil futures and palm oil futures settled lower.

 

Monday's settlement prices for benchmark contracts in yuan a metric tonne and volume for all contracts in lots (One lot is equivalent to 10 tonnes):

                                    

Contract       Settlement        Price        Change       Volume

Soybean       Sep 2009         3,460        Up   11       352,944

Corn            May 2009         1,558        Up    5          82,028

Soymeal      May 2009          2,711       Up   25        360,440

Palm Oil       May 2009          5,260       Dn   22         87,826

Soyoil          May 2009          6,254       Dn   46        279,744