June 8, 2007

 

Friday: China soybean futures settle up after new highs on CBOT

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mostly higher Friday after record gains on the Chicago Board of Trade overnight.

 

The benchmark January 2008 soybean contract settled RMB1 higher at RMB3,355 a metric tonne.

 

Total trading volume rose to 268,852 lots from 212,806 lots Thursday. One lot equals 10 tonnes.

 

CBOT soybean futures were supported by rekindled speculative fund buying interest, with the benchmark July soybeans settling 9 3/4 cents higher at US$8.32.

 

However, gains on the Chinese exchange lagged CBOT's rise as there is little negative news on weather conditions in major producing regions in China, traders said.

 

The U.S. Department of Agriculture is scheduled to release its weekly crop progress report at 4 p.m. EDT Monday. Analysts anticipate the USDA will show U.S. soybean planting progress wrapping up, with plantings seen 90% to 94% complete.

 

Soymeal futures settled mixed, while soyoil futures settled mostly higher.

 

The benchmark September 2007 soymeal contract settled RMB6 lower at RMB2,531/tonne, while the benchmark September 2007 soyoil contract settled RMB56 higher at RMB7,944/tonne.

 

Demand for soymeal from the feedmeal sector is unlikely to pick up soon, and ample stocks put pressure on prices, said Wang Xiaoguang, a trader at Galaxy Futures.

 

Corn futures settled lower, with the benchmark September 2007 contract down RMB7 at RMB1,656/tonne.

 

Trading volume for all corn contracts rose to 231,888 lots from 157,750 lots Thursday.