March 19, 2007

 

Monday: China soybean futures settle higher on CBOT gains

 

 

Soybean futures traded on the Dalian Commodity Exchange settled higher Monday, following Friday's gains on the Chicago Board of Trade.

 

The benchmark September 2007 contract rose RMB18 to settle at RMB3,209 a metric tonne.

 

Total trading volume declined to 111,036 lots from 123,980 lots Friday. One lot is equivalent to 10 tonnes.

 

CBOT soybean futures ended higher Friday, supported by speculative and technical buying amid ideas that recent declines were a bit overdone.

 

Traders said domestic funds also expect soybean futures to stay strong, and more money is likely to enter the market later on.

 

"The benchmark September contract may meet resistance at RMB3,300/tonne this week. If it can't break through, a fall is likely," said Ding Haijiang, a trader at Nanhua Futures Co.

 

Soymeal and soyoil futures also settled mostly higher, tracking the gains in soybeans.

 

The benchmark September 2007 soymeal contract rose RMB15 to settle at RMB2,659/tonne. The benchmark September 2007 soyoil contract settled RMB12 higher at RMB6,508/tonne.

 

Corn futures settled higher. The benchmark September 2007 contract settled RMB6 higher at RMB1,696/tonne.

 

Trading volume for all contracts fell to 189,538 lots from 249,646 lots Friday.

 

Traders said corn futures will likely consolidate at the current levels in the near term as funds turn their focus to soy products.