March 23, 2007

 

Friday: China soybean futures settle higher on CBOT gains

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mostly higher Friday, tracking overnight gains on the Chicago Board of Trade.

 

The benchmark September 2007 contract settled up RMB7 at RMB3,225 a metric tonne.

 

Total trading volume rose to 101,762 lots from 95,068 lots Thursday. One lot is equivalent to 10 tonnes.

 

Trading was not active, as many participants stayed on the sidelines.

 

"Market participants dare not buy or sell heavily ahead of the March 30 planting report from the U.S. Department of Agriculture," said a Beijing-based trader, adding the market is unlikely to see big movements in the next few trading sessions.

 

But traders expect the CBOT to show some signs of direction right ahead of the Friday report.

 

The market widely expects U.S. farmers to grow more corn at the expense of soybeans due to high corn prices. The issue is how much more corn farmers will grow.

 

Soymeal futures settled higher, while soyoil futures settled mixed.

 

The benchmark September 2007 soymeal contract rose RMB4 to settle at RMB2,663/tonne, while the benchmark September 2007 soyoil contract settled RMB18 higher at RMB6,546/tonne.

 

Corn futures settled mixed. The benchmark September 2007 contract settled unchanged at RMB1,690/tonne.

 

Trading volume for all corn contracts fell to 108,594 lots from 215,306 lots Thursday.