May 24, 2007

 

Thursday: China soybean futures settle up on CBOT gains, cash prices

 

 

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

 

The benchmark September 2007 soybean contract settled RMB9 higher at RMB3,249 a metric tonne.

 

The total trading volume declined to 192,148 lots from 192,456 lots Wednesday. One lot is equivalent to 10 tonnes.

 

CBOT soybean futures ended higher Wednesday on speculative money flows and lingering concerns over dryness in the eastern Midwest.

 

Higher domestic cash prices also helped support futures contracts, and the market expects soybean prices to rise further on reduced stocks.

 

Meanwhile, traders were cautious ahead of the long weekend in the U.S., waiting for more trading guidance from CBOT, said Dalu Futures.

 

CBOT markets will be closed Monday in observance of the Memorial Day holiday.

 

Soymeal and soyoil futures settled both higher.

 

The benchmark September 2007 soymeal contract settled RMB24 higher at RMB2,638/tonne, while the benchmark September 2007 soyoil contract settled RMB58 higher at RMB7,380/tonne.

 

Despite sluggish soymeal prices, expectations of recovery in the feedmeal sector supported futures contracts.

 

Soymeal is used as animal feed.

 

Corn futures settled mixed. Benchmark September 2007 contract settled RMB2 higher at RMB1,675/tonne.

 

Trading volume for all corn contracts rose to 292,968 lots from 226,404 lots Wednesday.