June 18, 2007

 

Monday: China soybean futures settle up on CBOT's jump

 

 

Soybean futures traded on the Dalian Commodity Exchange settled higher Monday on gains in the Chicago Board of Trade Friday.

 

The benchmark January 2008 soybean contract settled RMB61 higher at RMB3,344 a metric tonne.

 

Total trading volume rose to 261,662 lots from 143,746 lots Friday. One lot is equivalent to 10 tonnes.

 

CBOT soybean futures ended sharply higher Friday, rallying to new contract highs on speculative buying, with weather concerns driving the market. The July soybean contract settled 19 3/4 cents higher at US$8.47 1/4.

 

However, the domestic price rise was relatively small due to favorable weather in China.

 

"Unless domestic weather conditions turn (negative for soybean growing), soybean contracts (at Dalian bourse) are unlikely to catch up with gains on CBOT," said Kang Zhichao, a trader at Nanhua Futures Co.

 

Soymeal futures and soyoil futures settled higher.

 

The benchmark September 2007 soymeal contract settled RMB49 higher at RMB2,530/tonne, while the benchmark September 2007 soyoil contract settled RMB164 higher at RMB7,782/tonne.

 

Corn futures settled lower.

 

The benchmark September 2007 contract settled RMB12 lower at RMB1,614/tonne.

 

Trading volume for all corn contracts rose to 627,870 lots from 280,130 lots Friday.

 

Traders said corn futures are unlikely to be bullish in the short term, despite the high cash prices, as funds retreat from the contracts.