July 12, 2006

 

Wednesday: China soybean futures settle higher on CBOT gains

 

 

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

 

The benchmark September contract rose RMB4 to settle at RMB2,529 a metric tonne, after trading between RMB2,519/tonne and RMB2,539/tonne.

 

Total trading volume for all soybean contracts dropped to 24,442 lots from 47,624 lots Tuesday.

 

One lot is equivalent to 10 tonnes.

 

"Soybean futures prices have continued to fall in recent days. Today's rise is an upward correction," said Gao Yanrong, an analyst at Dalu Futures Co.

 

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

 

The benchmark September contract settled at RMB2,519/tonne, up RMB9.

 

Soymeal futures settled higher. The benchmark November 2006 soymeal contract rose RMB8 to settle at RMB2,326/tonne, after trading between RMB2,315/tonne and RMB2,337/tonne.

 

Total trading volume for all soymeal contracts rose to 440,988 lots from 320,318 lots Tuesday.

 

"Many soymeal makers have cut production in order to push up prices this year. That's why soymeal futures staged a relative robust uptrend," Gao said.

 

Corn futures settled mixed. The most widely held March 2007 contract settled at RMB1,432/tonne, down RMB2.

 

Total trading volume for all corn contracts fell to 427,916 lots from 656,500 lots Tuesday.

 

"Demand for corn is not as high as expected. Large corn processors have already stockpiled. Corn futures prices will probably hold at this level with small fluctuations in July and August," Wang added.

 

Soyoil futures settled mixed. The most widely held September 2006 soyoil contract fell RMB7 to settle at RMB5,221/tonne.

 

Total trading volume for all soyoil contracts fell to 91,876 lots from 114,394 lots Tuesday.