May 22, 2007

 

Tuesday: China soybean futures settle higher on CBOT rise

 

 

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

 

The benchmark September 2007 soybean contract settled RMB28 higher at RMB3,251 a metric tonne.

 

Total trading volume declined to 247,014 lots from 288,612 lots Monday. One lot is equivalent to 10 tonnes.

 

CBOT soybean futures ended higher Monday on a technical uptrend from speculative buying, with the July contract settling 8 cents higher at US$8.00 1/2 per bushel.

 

Traders have been watching the CBOT July contract for guidance, expecting it to meet resistance at US$8.00, which provided strong psychological support to the domestic market, said a local trader.

 

Soymeal contracts settled higher, while soyoil futures settled mixed.

 

The benchmark September 2007 soymeal contract settled RMB22 higher at RMB2,613/tonne, and the benchmark September 2007 soyoil contract settled RMB14 lower at RMB7,350/tonne.

 

Corn futures settled mostly lower. But the most heavily traded January 2008 contract settled RMB2 higher at RMB1,733/tonne.

 

Sufficient stocks pressured corn prices, but the previous benchmark September 2007 contract has strong support at RMB1,650/tonne, said a trader at Nanhua Futures Co. It settled at RMB1,678/tonne Tuesday.

 

Trading volume for all corn contracts declined to 280,558 lots from 293,558 lots Monday.