March 29, 2007

 

Thursday: China soybean futures settle up on CBOT; market awaits USDA report

 

 

Soybean futures traded on the Dalian Commodity Exchange settled higher Thursday on overnight gains in Chicago Board of Trade soybean futures, but trade was quiet ahead of the USDA report due to be released Friday.

 

Participants chose to wait on the sidelines, before the release of the U.S. Department of Agriculture's prospective planting and grain stocks report due Friday, said Gao Yanrong, an analyst with Dalu Futures Co.

 

The benchmark September 2007 contract rose RMB14 to settle at RMB3,216 a metric tonne, after trading between RMB3,211/tonne and RMB3,221/tonne.

 

Total trading volume rose to 86,086 lots versus 57,868 lots Wednesday. One lot is equivalent to 10 tonnes.

 

"With domestic soybean prices remained stable, the market is focusing on the upcoming USDA report about 2007 acreage, "which may affect CBOT prices," said Dong Liang, an analyst at Jiuheng Futures Co.

 

Dalian's soymeal and soyoil futures settled higher, along with gains in soybean futures.

 

The benchmark September 2007 soymeal contract gained RMB9 to settle at RMB2,649/tonne.

 

The benchmark September 2007 soyoil contract settled RMB64 higher at RMB6,700/tonne.

 

Dalian's corn futures settled lower, following overnight losses in CBOT corn futures, and investors also chose to retreat ahead of the USDA report.

 

The benchmark September 2007 contract settled RMB3 lower at RMB1,683/tonne, after trading between RMB1,682/tonne and RMB1,687/tonne.

 

Trading volume for all contracts totaled 94,638 lots, versus Wednesday's 153,300 lots.

 

"The domestic cash market is a bit weak now, adding pressure on futures prices," said Gao.

 

"We're likely to see prices stay in a narrow range for some time, amid diverged market opinions, if the USDA report doesn't bring any surprise," he added.