June 21, 2006

 

Wednesday: China soybean futures settle slightly higher; corn up

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled a tad higher, as advances in other commodities futures and marginal gains in overnight Chicago Board of Trade soybean futures lent support, analysts said.

 

The benchmark September 2006 soybean contract rose RMB8 to settle at RMB2,608 a metric tonne, after trading between RMB2,604/tonne and RMB2,612/tonne.

 

Trade volume for all soybean contracts fell to 5,976 lots, from 14,016 lots Tuesday.

 

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 mostly higher.

 

The benchmark September contract settled RMB14 higher at RMB2,515/tonne.

 

"Trade has become very thin, with investors waiting on the sidelines wondering when the seemingly endless consolidation will end," said analyst Lin Hui of China International Futures Co.

 

"Agri futures hold no attraction for investors. It's just too stable," she said.

 

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

 

The benchmark November 2006 soymeal contract rose RMB12 to settle at RMB2,326/tonne, after trading between RMB2,318/tonne and RMB2,333/tonne.

 

Total trade volume fell to 184,244 lots, from 225,628 lots Tuesday.

 

The widely held September 2006 soyoil contract settled RMB8 higher at RMB5,132/tonne.

 

Corn futures settled mostly higher, underpinned by stable cash values, analysts said.

 

The benchmark March 2007 contract rose RMB16 to settle at RMB1,475/tonne, after trading between RMB1,465/tonne and RMB1,484/tonne.

 

Total trade volume for all corn contracts fell to 438,498 lots from 521,072 lots Tuesday.