June 5, 2006

 

Monday: China soybean futures settle sharply up on CBOT; corn up

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled sharply up Monday, tracking strong gains in Chicago Board of Trade soybean futures Friday.

 

The benchmark September 2006 soybean contract settled RMB47 higher at RMB2,668 a metric tonne, after trading between RMB2,660/tonne and RMB2,688/tonne.

 

Trading volume for all soybean contracts rose to 57,096 lots from 21,988 lots Friday.

 

One lot equals 10 tonnes.

 

No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops, settled higher.

 

The benchmark September contract rose RMB44 to settle at RMB2,569/tonne.

 

"Such strong gains tracking CBOT could lead to corrections in the following sessions," said Zeng Xuezhou, an analyst with Beite Futures Co.

 

"The market becomes increasingly sensitive to weather conditions in the U.S. If positive news of weather comes along with the uptrend in other commodities, soy futures will be benefited," Zeng said.

 

Soymeal futures settled sharply up on fresh buying, especially in forward contracts, analysts said.

 

The benchmark November 2006 contract rose RMB64 to settle at RMB2,382/tonne, after trading between RMB2,373/tonne and RMB2,394/tonne.

 

Total trading volume rose to 455,758 lots from 417,914 lots Friday.

 

Soyoil futures settled higher. The benchmark September 2006 contract gained RMB38 to settle at RMB5,241/tonne.

 

Corn futures also settled higher on fresh buying.

 

The benchmark March 2007 contract rose RMB21 to settle at RMB1,531/tonne, after trading between RMB1,527/tonne and RMB1,538/tonne.

 

Total trading volume for all corn contracts fell to 566,006 lots from 735,104 lots Friday.