June 29, 2006

 

Thursday: China soybean futures settle mostly up; corn mixed

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled mostly higher Thursday in very quiet trading, with modest gains in Chicago Board of Trade soybean futures lending some support.

 

The benchmark September contract rose RMB2 to settle at RMB2,575 a metric tonne.

 

Total trading volume for all soybean contracts fell to 12,180 lots from 15,248 lots Wednesday. One lot equals 10 tonnes.

 

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

 

The benchmark September contract rose RMB2 to settle at RMB2,504/tonne.

 

"Traders are carefully watching the U.S. weather reports and hope to hear any news in July and August that could affect crop conditions," said Li Honglei, an analyst with Nanhua Futures Co.

 

Meanwhile, there were just a couple of lots traded "here and there", Li said.

 

Although feed demand has been picking up in southern Guangdong province, traders said the slow recovery isn't giving the market much support, given the huge stockpiles at ports.

 

Soymeal and soyoil contracts settled higher.

 

The benchmark November 2006 soymeal contract settled up RMB5 at RMB2,293/tonne.

 

Total trading volume for all soymeal contracts rose slightly to 153,776 lots from 141,642 lots Wednesday.

 

The most widely held September 2006 soyoil contract settled RMB10 higher at RMB5,162/tonne.

 

Corn futures settled mixed. The benchmark March 2007 contract fell RMB1 to settle at RMB1,471/tonne.