August 14, 2007

 

Tuesday: China soybean futures settle mixed; record soymeal turnover

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mixed Tuesday, as spillover strength from soymeal futures pared earlier losses stemming from a weaker opening on the Chicago Board of Trade's electronic trading session.

 

The benchmark May 2008 soybean contract settled RMB3 lower at RMB3,615 a metric tonne, after trading between RMB3,585/tonne and RMB3,640/tonne.

 

Total trading volume fell to 526,774 lots from 540,226 lots Monday. One lot is equivalent to 10 tonnes.

 

"The strong demand for feedmeal, following the surge of pork prices, will probably continue to send soymeal futures higher in the near-term," said Yu Junli, senior analyst with Green Futures Co.

 

Soybean will benefit from the gains in soymeal, although to a lesser extent, as concerns of an ongoing drought in China's soybean growing areas have made it stronger in comparison with CBOT soybeans, Yu said.

 

Soymeal futures settled higher, with total trading volume hitting an all-time high of 1.41 million lots.

 

The benchmark January 2008 soymeal contract settled RMB9 higher at RMB2,818/tonne.

 

Soyoil futures settled mostly lower, with the benchmark January 2008 soyoil contract settling RMB56 lower at RMB8,348/tonne.

 

Corn futures settled mostly higher on spillover strength from soymeal futures, analysts said.

 

The benchmark May 2008 contract settled unchanged at RMB1,590/tonne.

 

Trading volume for all corn contracts fell to 581,514 lots from 853,872 lots Monday.