May 9, 2006

 

Tuesday: China soybean futures settle up on fresh buying; corn up

 

 

Soybean futures on China's Dalian Commodity Exchange settled mostly higher Tuesday on fresh buying, supported by gains in other local commodities futures, traders and analysts said.

 

Soybean futures opened lower on overnight losses in Chicago Board of Trade soybean futures, but fresh buying emerged late morning to push prices to the positive territory, although long liquidation trimmed gains before the session ended, analysts said.

 

"It's understandable that some investors were still unconfident of such gains," said Gao Yanrong, an analyst with Dalu Futures Co.

 

The benchmark September 2006 soybean contract settled RMB17 higher at RMB2,660 a metric tonne, after trading between RMB2,630/tonne and RMB2,689/tonne.

 

Trading volume for all soybean contracts rose to 78,456 lots from 43,938 lots Monday.

 

One lot equals to 10 tonnes.

 

No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops, settled mostly higher as well.

 

The benchmark September contract settled RMB1 lower at RMB2,524/tonne.

 

Bullishness in copper and rubber futures have lent some support to soy futures, said analysts.

 

"Besides, some investors said improved corn sales on the spot market indicate that feed consumption is likely to pick up more quickly," said Gao.

 

Dalian's soymeal futures settled mostly higher, along with soybean futures.

 

The most widely held September 2006 contract rose RMB18 to settle at RMB2,286/tonne, after trading between RMB2,257/tonne and RMB2,312/tonne.

 

Soyoil futures settled lower. The benchmark September 2006 contract fell RMB6 to settle at RMB5,142/tonne.

 

Corn futures settled higher, spurred by rising corn prices on the spot market, and news that drought has hit major corn growing areas in northeastern China, such as Heilongjiang province, said analysts.

 

The benchmark January 2007 contract settled RMB18 higher at RMB1,462/tonne, after trading between RMB1,442/tonne and RMB1,475/tonne.

 

Trading volume for all corn contracts rose to 706,474 lots from 537,788 lots Monday.