August 6, 2012

China's Dalian Exchange to expand soymeal's daily trading limits

The Dalian Commodity Exchange of China will increase the trading margin and broaden the daily trading limit for soymeal futures, effective Monday (Aug 6), it published on its website Wednesday.

The margin will be increased to 7% from 5%, while the daily trading limit will be widened to 5% from 4%.

The measures are intended to curb overspeculation, Everbright Futures analyst Zhao Yan said.

The move to widen the trading limit follows several days of limit-ups fuelled by speculative buying amid concerns over US weather.

The front-month soy contract has risen 47% so far this year, making it the best performer among agricultural commodity futures on the DCE and Zhengzhou Commodity Exchange.