April 26, 2006

 

Wednesday: China soybean futures settle higher on CBOT gains

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled higher Wednesday, tracking overnight gains in Chicago Board of Trade soybean and soyoil futures.

 

CBOT soybean futures ended higher Tuesday on forecasts for good U.S. corn planting weather this week that prompted ideas of increased U.S. corn acreage at the expense of soy.

 

CBOT soyoil futures settled higher on reports of lower canola planting in Canada. Canola is a competing oilseed crop.

 

Fundamentally, soybean demand in China remains quite muted, with a continued fall in physical prices of soybeans and soymeal in China's local markets.

 

Analysts say the upside remains limited for China's soybean futures, which are quite low at the moment, unless physical demand for soybeans perks up.

 

The benchmark September 2006 contract for No. 1 soybeans gained RMB11 to settle at RMB2,604 a metric tonne, after trading between RMB2,600 and RMB2,608/tonne.

 

No. 2 soybean contracts, which can be delivered with soybeans harvested from genetically modified crops, settled higher.

 

The benchmark September 2006 contract rose RMB9 to settle at RMB2,502/tonne.

 

Soyoil futures ended mixed, with four contracts - May 2006, July 2006, August 2006 and January 2007 - settling unchanged, while the September, November and December contracts settled higher.

 

The benchmark September 2006 soyoil contract settled RMB30 higher at RMB5,138/tonne, after trading between RMB5,104 and RMB5,154.

 

Soymeal futures settled mostly higher, with the benchmark September contract settling RMB15 higher at RMB2,214/tonne.

 

Corn futures also settled mostly higher, with the benchmark January 2007 contract settling RMB13 higher at RMB1,406/tonne.