February 14, 2007

 

Wednesday: China soybean futures settle up on CBOT, high cash soymeal

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled higher Wednesday, tracking overnight gains in Chicago Board of Trade soybean contracts, and supported by rising soymeal cash prices.

 

The most active September 2007 contract settled RMB12 higher at RMB3,163 a metric tonne.

 

Total trading volume declined to 91,846 lots from 156,388 lots Tuesday. One lot is equivalent to 10 tonnes.

 

CBOT soybean futures ended higher Tuesday on technical strength, concerns about the crop in South America, and spillover support from other markets.

 

Stronger foreign markets, notably crude oil futures, spurred gains in Chinese soybeans, with traders looking to the energy market for direction amid little fresh leads.

 

There was also talk that soybean rust may have damaged Brazil's crop, and that private estimates for a record output may need to be revised lower.

 

Meanwhile, soymeal prices remained at high levels amid rising soybean import prices, said Li Panfeng, a trader at Beite Futures Co.

 

Soymeal is made from crushing soybeans.

 

If the benchmark March soybean futures on CBOT breaks $7.57 1/2 per bushel during the Lunar New Year holiday, domestic soybean futures will surge, with technical resistance pegged at 3,350/tonne for benchmark September 2007 contract, said Li.

 

March soybeans closed 9 3/4 higher at $7.55 per bushel overnight on CBOT.

 

The Dalian Commodity Exchange will be closed next week for the Lunar New Year holiday, which begins Feb. 18.

 

Soymeal and soyoil contracts settled mostly higher.

 

The most active September soymeal contract settled RMB15 higher at RMB2,638/tonne, while the benchmark May 2007 soyoil contract settled up RMB10 at RMB6,470/tonne.

 

Corn futures settled mixed, with the benchmark September corn contract unchanged at RMB1,699/tonne.

 

Trading volume for corn contracts totaled 246,338 lots compared with 489,974 lots Tuesday.

 

Corn futures were pressured by sluggish cash prices, which have been falling for the past two weeks on thin demand and supply ahead of the Lunar New Year, said traders.