March 7, 2007

 

Wednesday: China soybean futures settle mixed; market awaits CBOT rebound

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled mixed Wednesday after the overnight decline on the Chicago Board of Trade.

 

"The recent decline on CBOT doesn't have much negative impact on the domestic market, where fundamentals are good," said Dong Liang, a trader at Shanghai Jiuheng Futures Co.

 

China's market is waiting for a rebound on CBOT, and will likely see a larger rise than CBOT once the expected rebound happens, he added.

 

The most active September 2007 contract settled RMB2 lower at RMB3,209 a metric tonne.

 

Total trading volume declined to 119,504 lots from 154,468 lots Tuesday. One lot equals 10 tonnes.

 

The recent snowstorm in northeast China's grain growing regions also supported soybean and corn prices due to transport problems, traders said.

 

There are forecasts for possible snowfall in the next 10 days, which may give additional support to both futures and cash prices, traders added.

 

Soymeal and soyoil contracts settled mostly lower.

 

The most active September soymeal contract settled RMB6 lower at RMB2,691/tonne, while the benchmark May 2007 soyoil contract settled RMB22 lower at RMB6,450/tonne.

 

Corn futures also settled mostly lower.

 

The benchmark September corn contract settled RMB5 lower at RMB1,701/tonne.

 

Trading volume for corn contracts totaled 266,442 lots compared with 210,214 lots Tuesday.