July 7, 2006

 

Friday: China soybean futures settle higher on CBOT gains

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled mostly higher Friday in step with overnight gains in Chicago Board of Trade soybean futures.

 

The benchmark September contract rose RMB9 to settle at RMB2,577 a metric tonnene, after trading between RMB2,568/tonnene and RMB2,590/tonnene.

 

Total trading volume for all soybean contracts rose to 22,472 lots from 8,616 lots Thursday.

 

One lot is equivalent to 10 tonnenes.

 

"The overnight gains on CBOT lent support to local soybean futures," said Ding Shi Junfeng, an analyst at Tianma Futures Co.

 

"Trading volume is relatively thin due to the persistent oversupply condition and sluggish domestic demand," Shi added.

 

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

 

The benchmark September contract settled at RMB2,524/tonnene, up RMB9.

 

Soymeal futures settled higher, in line with soybean futures.

 

The benchmark November 2006 soymeal contract gained RMB21 to settle at RMB2,322/tonnene, after trading between RMB2,315/tonnene and RMB2,331/tonnene.

 

Total trading volume for all soymeal contracts rose to 272,964 lots from 154,496 lots Thursday.

 

"Now speculators favor soymeal, because most soymeal in China is made from imported soybeans and thus is more sensitive to CBOT prices," Shi said.

 

Soyoil futures settled mostly higher, following soybeans and soymeal. The most widely held September 2006 soyoil contract settled RMB28 higher at RMB5,220/tonnene.

 

Corn futures settled lower, pressured by losses in the spot market, Shi said.

 

The most widely held March 2007 contract settled at RMB1,448/tonnene, down RMB10.

 

Total trading volume for all corn contracts rose to 611,768 lots from 368,970 lots Thursday.