June 12, 2006

 

Monday: China soybean futures settle mostly up on e-CBOT, weather

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled mostly higher Monday, on gains in Chicago Board of Trade soybean futures during Asian trading hours.

 

The benchmark September 2006 soybean contract rose RMB19 to settle at RMB2,641 a metric tonne, after trading between RMB2,635/tonne and RMB2,658/tonne.

 

Trading volume for all soybean contracts fell to 17,422 lots from 19,406 lots Friday.

 

One lot is equivalent to 10 tonnes.

 

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

 

The benchmark September contract settled RMB18 higher at RMB2,529/tonne.

 

"Gains are possibly on the U.S. weather forecast, insufficient precipitation and storm landing," said Ding Haijiang, an analyst with Nanhua Futures Co.

 

"However, local investors were still quite cautious, preferring to wait for CBOT performances after the weekend," he said.

 

Soymeal and soyoil futures settled mostly higher, in line with soybean futures.

 

The benchmark November 2006 soymeal contract settled RMB28 higher at RMB2,355/tonne, after trading between RMB2,349/tonne and RMB2,363/tonne.

 

Total trading volume fell to 268,860 lots from 431,584 lots Friday.

 

The benchmark September 2006 soyoil contract rose RMB24 to settle at RMB5,191/tonne.

 

Corn futures settled slightly higher, with the gains in CBOT electronic trading lending some support, analysts said.

 

"Consolidation may continue for a while, amid little local market-moving news," Ding said.

 

The benchmark March 2007 contract rose RMB13 to settle at RMB1,509/tonne, after trading between RMB1,504/tonne and RMB1,517/tonne.

 

Total trading volume for all corn contracts fell to 370,412 lots from 445,882 lots Friday.