July 5, 2007

 

Thursday: China soybean futures settle mixed; await guidance from CBOT

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mixed Thursday in a quiet session, as traders awaited more guidance from the Chicago Board of Trade.

 

The CBOT was closed Wednesday in observance of the U.S. Independence Day holiday.

 

The benchmark January 2008 soybean contract settled RMB16 higher at RMB3,295 a metric tonne.

 

Total trading volume declined to 144,722 lots from 154,660 lots Wednesday. One lot is equivalent to 10 tonnes.

 

Traders expected the CBOT to continue its earlier rise after reopening Thursday due to the unexpected decline in soybean acreage.

 

The U.S. Department of Agriculture in a report last Friday said 2007 soybean acreage was at 64.081 million acres, down 15% from 2006's record high and the lowest planted area since 1995.

 

"The benchmark soybean contracts at CBOT are very likely to rise above $9 if the weather is not good," said Liu Xinghua, a trader at Great Wall Futures Co.

 

Even if the weather turns out good, the room for downside is limited, he added.

 

Soymeal futures and soyoil futures settled slightly higher.

 

The benchmark January 2008 soymeal contract settled RMB8 higher at RMB2,612/tonne, while the benchmark September 2007 soyoil contract settled RMB42 higher at RMB7,924/tonne.

 

Corn futures settled lower.

 

The benchmark January 2008 contract settled RMB13 lower at RMB1,539/tonne.

 

Trading volume for all corn contracts declined to 605,674 lots from 687,098 lots Wednesday.