February 15, 2007

 

Thursday: China soybean futures settle mixed, traders stay on sidelines

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled mixed Thursday, with traders staying on the sidelines ahead of the long Lunar New Year holiday.

 

The most active September 2007 contract settled RMB1 lower at RMB3,162 a metric tonne.

 

Total trading volume declined to 77,104 lots from 91,846 lots Wednesday. One lot is equivalent to 10 tonnes.

 

Many traders squared their positions as the market will be closed next week for the Lunar New Year, which begins Feb. 18.

 

As China's soybean futures frequently track those on the Chicago Board of Trade, traders are concerned of possible price fluctuations on CBOT while China is shut.

 

"There is a lack of funds to push the market while CBOT didn't provide a clear direction," said Liu Xinghua, a trader at Great Wall Futures Co. in Shanghai.

 

Soymeal and soyoil contracts settled mostly higher.

 

The most active September soymeal contract settled RMB6 higher at RMB2,644/tonne, while the benchmark May 2007 soyoil contract settled up RMB12 at RMB6,482/tonne.

 

Demand for soymeal from the feed sector is stable, but soymeal stocks are sufficient, capping the gains, said Liu.

 

Soymeal is used as animal feed.

 

Corn futures settled lower, with the benchmark September corn contract RMB7 lower at RMB1,692/tonne.

 

Trading volume for corn contracts totaled 298,394 lots compared with 246,338 lots Thursday.

 

Corn cash prices were sluggish while there was no fresh news to support the commodity, traders said.