March 28, 2007

 

Wednesday: China soybean futures settle up; trade thin ahead of US data

 

 

Soybean futures traded on the Dalian Commodity Exchange settled slightly higher amid sluggish trading, with traders staying on the sidelines ahead of the U.S. Department of Agriculture's acreage and stocks reports due Friday.

 

The benchmark September 2007 contract settled RMB11 higher at RMB3,202 a metric tonne.

 

Total trading volume declined to 57,868 lots from 104,330 lots Tuesday. One lot is equivalent to 10 tonnes.

 

"There is no clear (trading) direction due to a lack of news," said Li Jun, a trader at Tonneglian Futures.

 

The market is likely to consolidate ahead of the reports, he added.

 

Traders expect soybean prices to be under downward pressure in the near term, because the soybean harvest in Brazil is going on smoothly, and more beans are expected to be shipped to China.

 

Soymeal futures and soyoil futures settled mostly higher.

 

The benchmark September 2007 soymeal contract rose RMB9 to settle at RMB2,640/tonne, while the benchmark September 2007 soyoil contract settled RMB66 higher at RMB6,636/tonne.

 

Corn futures also settled higher. The benchmark September 2007 contract settled RMB8 higher at RMB1,686/tonne.

 

Trading volume for all corn contracts fell to 153,300 lots from 247,510 lots Tuesday.

 

Corn and soyoil prices are being supported by a recovery in crude oil prices, but corn prices may be pressured when the planting season nears and farmers try to speed up sales, traders said.