March 30, 2007

Friday: China soybean futures settle up on CBOT rise; corn higher

 

 

Soybean futures traded on the Dalian Commodity Exchange settled up Friday on overnight gains in Chicago Board of Trade soybean futures.

 

Analysts said expectations of bullish plantings and grain stocks reports from the U.S. Department of Agriculture later Friday fueled CBOT's overnight gains, and prompted fresh buying on the Dalian market.

 

The benchmark September 2007 contract rose RMB21 to settle at RMB3,237 metric tonne, after trading between RMB3,217/tonne and RMB3,259/tonne.

 

Total trading volume rose to 223,142 lots from 86,086 lots Thursday. One lot equals 10 tonnes.

 

"The strong technicals of CBOT soybean futures, the speculation of bullish USDA reports, along with steady domestic prices, prompted speculative buying," Great Wall Futures Co. analyst Liu Xinghua said.

 

Strong soyoil prices, underpinned by gains in crude oil, also helped to support soybean futures, Liu added.

 

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

 

The benchmark September 2007 soymeal contract gained RMB15 to settle at RMB2,664/tonne, while the benchmark September 2007 soyoil contract settled RMB34 higher at RMB6,734/tonne.

 

Corn futures traded on the exchange settled slightly higher on strong gains in crude oil this week, despite speculation of bigger corn acreage in the USDA report, analysts said.

 

However, concerns over the report resulted in a large drop in open interest in the session.

 

The benchmark September 2007 contract settled RMB4 higher at RMB1,687/tonne, after trading between RMB1,684/tonne and RMB1,691/tonne.

 

Trading volume for all contracts totaled 206,094 lots, up from Thursday's 94,638 lots.

 

"It's likely that corn prices will grow, if crude oil is to climb further, but if oil isn't climbing further, corn prices may be pressured by expectations of more supply in the future," said Zhang Yifan, a trader at China Grains & Oils Group Feed Corp.