August 2, 2006
Wednesday: China soybean futures settle higher on upward correction
Soybean futures traded on China's Dalian Commodity Exchange settled mostly higher on an upward correction, an analyst said.
The benchmark September contract settled RMB1 higher at RMB2,400 a metric tonne, after trading between RMB2,375 and RMB2,420/tonne.
Total trading volume rose to 96,532 lots from 68,044 lots Tuesday. One lot is equivalent to 10 tonnes.
"Soybean futures gained slightly on an upward correction, small rebounds are still expected in near future as their prices have fallen too low recently," Zeng Xuezhou, an analyst at Beite 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 RMB2,445/tonne, down RMB7.
Soymeal futures settled mostly lower. The most active January 2007 soymeal contract fell RMB4 to settle at RMB2,285/tonne, after trading between RMB2,279 and RMB2,292/tonne.
Total trading volume for all soymeal contracts fell to 191,610 lots, from 258,150 lots Tuesday.
"Speculators are still investing in soymeal futures despite their weak fundamentals, expecting a major rebound in August, however the losses will continue if weather forecasts show no major drought in soybean producing regions both in China and in the US," Zeng said.
Soyoil futures settled mostly higher. The benchmark November 2006 soyoil contract rose RMB19 to settle at RMB5,604/tonne.
"Stocks of soyoil are abundant while demand remains stable in China. Soyoil futures prices have risen beyond soyoil's fundamentals, showing speculation activities are involved," Zeng added.
Corn futures settled lower. The most widely held May 2007 contract settled at RMB1,413/tonne, down RMB5.
"Weather forecasts are good, indicating a good harvest of corn, which is weighing on corn futures," Zeng said.
Total trading volume for corn rose to 229,726 lots from 211,308 lots Tuesday.
