April 24, 2006

 

Monday: China soybean futures settle up on higher domestic demand

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled higher Monday on increased buying from poultry breeders ahead of next week's long market holiday, said traders.

 

The benchmark September 2006 contract rose RMB21 to settle at RMB2,601 a metric tonne, after trading between RMB2,590 and RMB2,608/tonne.

 

Trading volume in Dalian's soybean futures market increased to 54,164 lots from 46,028 lots Friday. One lot is equivalent to 10 tonnes.

 

"Many poultry breeders started to increase buying, as they have to maintain their soybean stockpiles at a sufficient level for the holiday," said a Zhejiang-based trader.

 

As a result, continued buying is expected to pull prices up further Tuesday, according to analysts.

 

The No. 2 soybean contracts, which can be delivered with soybeans harvested from genetically modified crops, settled mostly higher amid the positive mood.

 

The benchmark September 2006 contract rose RMB14 to settle at RMB2,498/tonne, after trading between RMB2,490 and RMB2,510/tonne.

 

Soyoil futures settled mostly higher on domestic demand for oil ahead of the holiday. Chinese residents usually consume more soyoil during the holidays than normal weeks.

 

The benchmark September 2006 soyoil contract rose RMB60 to settle at RMB5,125/tonne, after trading between RMB5,080 and RMB5,146/tonne.

 

Dalian's soymeal futures settled mostly higher following soybean futures' ascent.

 

The benchmark September 2006 soymeal contract added RMB21 to settle at RMB2,210/tonne, after trading between RMB2,200 and RMB2,219/tonne.

 

Corn futures settled higher on speculative buying following declines late last week.

 

The most heavily traded January 2006 contract rose RMB17 to settle at RMB1,405/tonne, after trading between RMB1,395 and RMB1,412/tonne.

 

China's futures trading is off-limits to foreign investors.