June 28, 2006

 

Wednesday: China soybean futures settle mostly higher on CBOT gains

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled mostly higher Wednesday, following gains in Chicago Board of Trade soybean futures.

 

The benchmark September contract rose RMB8 to settle at RMB2,573 a metric tonne.

 

Total trading volume for all soybean contracts further shrank to 15,248 lots from 16,276 lots Tuesday. One lot is equivalent to 10 tonnes.

 

"Trading remained quiet, lacking fresh news," said Liu Xinghua, a Great Wall Futures Co. analyst.

 

"The long-awaited weather news that can boost market sentiment hasn't come, which is quite disappointing."

 

Given the local oversupply conditions - a result of large volumes of imports and a slow recovery of feed consumption - soy futures lack the momentum to advance further, Liu said.

 

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

 

The benchmark September contract rose RMB7 to settle at RMB2,502/tonne.

 

Both soymeal and soyoil contracts settled higher, along with soybean futures.

 

The benchmark November 2006 soymeal contract settled RMB8 higher at RMB2,288/tonne.

 

Total trading volume for all soymeal contracts fell to 141,642 lots from 256,860 lots.

 

The most widely held September 2006 soyoil contract settled RMB27 higher at RMB5,152/tonne.

 

Corn futures settled mostly higher, with the benchmark March 2007 contract up RMB5 at RMB1,472/tonne.

 

Total trading volume fell to 217,412 lots from 298,182 lots Tuesday.