April 19, 2007

 

Thursday: China soybean futures settle mostly up on technical rebound

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mostly higher Thursday on a technical rebound.

 

Soybean futures have been falling for seven consecutive days on a large amount of imports and high level of stocks.

 

Traders said the recent fall in soybean prices was a return to their true value after the crop's prices had risen to high levels.

 

However, the benchmark September 2007 contract settled RMB4 lower at RMB3,060 a metric tonne.

 

Total trading volume fell to 283,196 lots from 310,154 lots Wednesday. One lot is equivalent to 10 tonnes.

 

"(We) need to wait and see the (soybean futures) prices in the next two trading sessions to judge whether the rise can sustain," said Ding Haijiang, a trader at Nanhua Futures Co.

 

With the start of China's planting season, extending from April to May, traders expect soybean prices to see more fluctuations with the changes of weather conditions.

 

Corn futures settled mostly slightly higher also on a technical rebound after their recent fall. But Ding said there is still room for another fall as stocks are high. The benchmark September 2007 contract settled RMB3 higher at RMB1,643/tonne.

 

Trading volume for all corn contracts fell to 433,384 lots from 795,572 lots Wednesday.

 

Soymeal futures settled mixed and soyoil futures settled mostly lower.

 

The benchmark September 2007 soymeal contract fell RMB10 to settle at RMB2,449/tonne, while the benchmark September 2007 soyoil contract settled RMB64 lower at RMB6,832/tonne.