May 17, 2007

 

Thursday: China soybean futures settle mostly higher on CBOT rise

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mostly higher Thursday, following overnight gains at the Chicago Board of Trade.

 

But the benchmark September 2007 contract settled RMB4 lower at RMB3,234 a metric tonne.

 

Total trading volume rose to 244,072 lots from 172,776 lots Wednesday. One lot is equivalent to 10 tonnes.

 

CBOT soybean futures rallied to six-week highs on aggressive fund buying interest Wednesday.

 

Despite the domestic market settling in positive territory, soybean prices didn't show much strength throughout the session as traders were cautious.

 

The benchmark CBOT July soybean contract may meet resistance at US$8.00 a bushel, and the market is waiting to see its performance tonight, said Xu Wenjie, a trader at Tianma Futures Co.

 

The contract settled 14 3/4 cents higher at US$7.92 3/4 Wednesday.

 

Soymeal contracts settled mostly higher, but soyoil futures settled mostly lower.

 

The benchmark September 2007 soymeal contract settled unchanged at RMB2,607/tonne, while the benchmark September 2007 soyoil contract settled RMB10 lower at RMB7,280/tonne.

 

Gu Jianjun, a trader at Jinyuan Futures, said the fall in soyoil contracts is a "normal correction" after the recent rise to a record high.

 

Corn futures settled lower. The benchmark September 2007 contract settled RMB4 lower at RMB1,681/tonne.

 

Dry weather in northeast China's major corn producing region has limited the growth of corn sprouts, the Jilin Province Grain Administration said Thursday.

 

But traders said the weather has limited impact on the corn market, as the focus is now on soybeans.

 

Trading volume for all corn contracts fell to 244,992 lots from 336,074 lots Wednesday.