May 11, 2006
Thursday: China soybean futures settle slightly higher; corn mixed
Soybean futures traded on China's Dalian Commodity Exchange settled slightly higher Thursday on light speculative buying, as investors took their cue from a surge in other commodities futures.
The market also rose on modest gains in Chicago Board of Trade soybean futures Wednesday, said analysts.
The benchmark September 2006 soybean contract settled RMB13 higher at RMB2,683 a metric tonne, after trading between RMB2,655/tonne and RMB2,699/tonne.
Trading volume for all soybean contracts rose to 74,858 lots from 51,370 lots Wednesday.
One lot is equal to 10 tonnes.
No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops, settled mixed.
The benchmark September contract rose RMB7 to settle at RMB2,549/tonne.
"Other bullish local futures, such as metals and rubber, lent some support to soybeans, raising the speculative atmosphere surrounding soy futures despite bearish fundamentals," said Xu Yulan, an analyst with Yongan Futures Co.
"The pressure to take profits is looming, but certainly, if CBOT extends its uptrend, the local market will follow. Otherwise, it's inevitable," he said.
Soymeal futures settled mostly higher on fresh buying, though long liquidation in the late afternoon trimmed some gains, said analysts.
The benchmark November 2006 contract rose RMB24 to settle at RMB2,408/tonne, after trading between RMB2,369/tonne and RMB2,433/tonne.
Soyoil futures settled higher. The benchmark September 2006 contract rose RMB43 to settle at RMB5,233/tonne.
Corn futures settled mixed. The benchmark January 2007 contract settled RMB1 higher at RMB1,474/tonne, after trading between RMB1,462/tonne and RMB1,482/tonne.
Trading volume for all corn contracts rose to 875,006 lots from 701,700 lots Wednesday.
"Some investors are eager to take profits on the gains seen in the past sessions, and so a correction is likely soon," said Xu.
