July 20, 2007

 

Friday: China soybean futures settle higher on CBOT gains

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mostly higher Friday, following overnight gains at the Chicago Board of Trade.

 

The benchmark January 2008 soybean contract settled RMB11 higher at RMB3,309 a metric tonne.

 

Total trading volume rose to 143,076 lots from 142,398 lots Thursday. One lot is equivalent to 10 tonnes.

 

CBOT soybean futures rebounded from early losses on the hot and dry weather forecast for the Midwest next week.

 

The Chinese benchmark soybean contract is likely to consolidate between RMB3,250 and RMB3,350 in the near term, before trading higher, said a local trader.

 

Meanwhile, stable cash soymeal prices helped to support soybean prices.

 

The trader expected CBOT November soybeans to be supported at $8.50 a bushel, after finishing 5 1/2 cents higher at $8.82 Thursday.

 

Soymeal futures and soyoil futures settled mostly higher.

 

The benchmark January 2008 soymeal contract settled RMB12 higher at RMB2,615/tonne, while the benchmark September 2007 soyoil contract settled RMB36 higher at RMB8,132/tonne.

 

Rising crude oil and palm oil supported the prices of vegetable oils, which can be made into biofuels, said traders.

 

Corn futures settled lower.

 

The benchmark January 2008 contract settled RMB5 lower at RMB1,507/tonne.

 

Trading volume for all corn contracts declined to 380,620 lots from 390,914 lots Thursday.