March 9, 2009

China's soybean futures traded on the Dalian Commodity Exchange settled higher Monday, tracking a rebound in the Chicago Board of Trade counterpart Friday.

 

The benchmark September 2009 soybean contract rose 1.1% to settle at RMB3,470 a metric tonne.

 

Still, Dalian soybean may stay in consolidation in the coming sessions on a lack of fundamental direction from outside, analysts said.

 

Looking ahead, "market participants will be watching the USDA supply-and-demand report coming out around Wednesday for fresh cues," said Gao Yanrong, an analyst with Dalu Futures.

 

Gao put nearby support at RMB3,300/tonne and tipped nearby resistance at RMB3,600/tonne on chart-based cues.

 

Positive sentiment from CBOT soybean's rebound largely offset the weakness in equity and metal markets, analysts said, adding some bargain-hunting also contributed to soybean's rise on the exchange.

 

"Whatever the USDA report brings, the 9-day annual parliamentary meeting will continue to support soybean prices," said Gao.

 

The trading volume of all soybean contracts rose to 267,598 lots from 233,540 lots Friday.

 

The open interest increased by 12,688 lots to 341,508 lots Monday.

 

All other agricultural products settled higher, in line with soybean's gains on the exchange.

 

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

                                      

Contract         Settlement       Price       Change      Volume

Soybean         Sep 2009        3,470       Up   37      245,212

Corn              Sep 2009        1,696        Up   11     152,122

Soymeal         Sep 2009        2,500       Up   28      632,354

Palm Oil          Sep 2009        5,246       Up  120     133,066

Soyoil             Sep 2009        6,056       Up  108     427,094