April 27, 2006

 

Thursday: China soybean futures settle mostly higher as specs buy

 

 

China's Dalian Commodity Exchange soybean futures settled mostly higher Thursday on speculative buying.

 

The benchmark September 2006 contract inched up RMB3 a metric tonne to RMB2,607/tonne, after trading between RMB2,596/tonne and RMB2,616/tonne.

 

Volumes increased to 41,474 lots from Wednesday's 31,510 lots. One lot is equivalent to 10 tonnes.

 

"We are still not sure about where the widely watched U.S. soybean futures will go, but we have seen the fact they were underpinned by a few positive factors yesterday... So a little buying interest pushed prices up today," said a Zhejiang-based trader.

 

Overnight losses in U.S. soybean futures were limited by a steady to weaker U.S. dollar, concerns over inflation and the ongoing interest in bio-fuels as an alternative to petroleum-based energy products.

 

In Dailian, the No. 2 soybean contracts, which can be delivered with soybeans harvested from genetically modified crops, settled mixed, with the benchmark contract settling unchanged in range-bound trading.

 

The benchmark September 2006 No. 2 contract settled at RMB2,502/tonne, after trading between RMB2,491/tonne and RMB2,512/tonne.

 

Soymeal futures settled mostly higher on increased demand by domestic poultry and livestock breeders ahead of a market holiday next week.

 

The benchmark November 2006 soymeal contract rose RMB15/tonne to RMB2,273/tonne, after trading between RMB2,248/tonne and RMB2,290/tonne.

 

Soyoil futures traded in Dalian settled mixed amid sluggish trade ahead of the holiday.

 

The benchmark September 2006 soyoil contract lost RMB8/tonne to settle at RMB5,130/tonne, after trading between RMB5,116/tonne and RMB5,150/tonne.

 

Meanwhile, corn futures traded on the exchange settled higher, with the most heavily traded January 2007 contract rising RMB17/tonne to RMB1,423/tonne after trading between RMB1,405/tonne and RMB1,431/tonne.