May 31, 2007

 

Thursday: China soybean futures settle up on CBOT gains; corn higher

 

 

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

 

The benchmark January 2008 soybean contract settled RMB27 higher at RMB3,312 a metric tonne.

 

Total trading volume declined to 191,710 lots from 358,160 lots Wednesday. One lot is equivalent to 10 tonnes.

 

The contracts are unlikely to rise sharply in the short term amid a lack market-moving news and prices at high levels, said analysts.

 

Li Jun, a trader at Tonglian Futures, put the resistance level for the benchmark contract at RMB3,360/tonne. The contract traded between RMB3,323/tonne and RMB3,301/tonne Thursday.

 

Long term, the market has the potential to rise further if the weather is unfavorable for American soybean growth in June and July, analysts added.

 

Soymeal and soyoil futures settled mostly higher, along with soybean.

 

The benchmark September 2007 soymeal contract settled RMB14 higher at RMB2,550/tonne, while the benchmark September 2007 soyoil contract settled RMB152 higher at RMB7,744/tonne.

 

Corn futures settled higher on high cash prices. The benchmark September 2007 contract settled RMB12 higher at RMB1,662/tonne.

 

Farmers now have limited corn at hand, and rising pork and poultry prices have encouraged farmers to raise more livestock, which could push up corn demand as a result.

 

Trading volume for all corn contracts declined to 218,900 lots from 332,738 lots Wednesday.