April 25, 2007

 

Wednesday: China soybean futures settle down on CBOT losses; likely steady

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mostly lower Wednesday, following overnight losses on the Chicago Board of Trade.

 

However, the benchmark September 2007 contract settled RMB7 higher at RMB3,080 a metric tonne.

 

Total trading volume rose to 147,866 lots from 133,780 lots Tuesday. One lot is equivalent to 10 tonnes.

 

Traders expect soybean prices to be stable after the week-long Labor Day holiday in early May, with a recovery in demand in the feedmeal sector.

 

"More demand from the feedmeal sector and the pressure from large amounts of imported soybeans will keep soybean prices at stable levels," said Lu Xin, a trader at Cofco Futures Co.

 

Soymeal, which is made by crushing soybeans, is used as animal feed.

 

A large number of South American soybeans will arrive in China in May.

 

Soymeal futures and soyoil futures settled mostly higher.

 

The benchmark September 2007 soymeal contract rose RMB14 to settle at RMB2,481/tonne, while the benchmark September 2007 soyoil contract settled RMB30 higher at RMB6,904/tonne.

 

Corn futures also settled higher on expectations of higher cash prices.

 

The benchmark September 2007 contract settled RMB3 higher at RMB1,646/tonne.

 

Trading volume for all corn contracts rose to 218,410 lots from 215,790 lots Tuesday.

 

With the start of the planting season, farmers are busy and not eager to cash in their stocks, and the dry weather makes it easier for them to preserve their stocks, said Shen Wei, an analyst at Cofco Maize Co. in Beijing.