June 30, 2006

 

Friday: China soybean futures settle up on CBOT gains, other markets

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled higher Friday, on the heels of overnight gains in Chicago Board of Trade soybean futures, amid jumps in other local commodities futures.

 

The benchmark September contract rose RMB13 to settle at RMB2,588 a metric tonne, after trading between RMB2,580/tonne and RMB2,596/tonne.

 

Total trading volume for all soybean contracts rose to 15,902 lots from 12,180 lots Thursday.

 

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 fell RMB1 to settle at RMB2,503/tonne.

 

"Strong gains in copper, rubber and fuel oil futures lent some support, besides CBOT gains," said Gao Yanrong, an analyst at Dalu Futures Co.

 

Moreover, "the market also expects imports in the following months to slow down, which is likely to underpin local cash values," he said.

 

Soymeal futures settled higher in step with soybean futures.

 

The benchmark November 2006 contract rose RMB19 to RMB2,312/tonne on short-covering.

 

Total trading volume for all soymeal contracts climbed to 174,990 lots from 153,776 lots Thursday.

 

Soyoil futures settled higher. The most widely held September 2006 contract settled at RMB5,198/tonne, up RMB36.

 

Corn futures settled mostly a tad higher, after trading in a narrow range. The benchmark March 2007 contract rose RMB5 to settle at RMB1,476/tonne.