August 27, 2007

 

Monday: China soybean futures settle mixed, await incentives

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mixed Monday, as the market waited for new incentives to trade on.

 

The benchmark May 2008 soybean contract settled RMB5 lower at RMB3,648 a metric tonne.

 

Total trading volume rose to 421,340 lots from 349,494 lots Friday. One lot is equivalent to 10 tonnes.

 

Chicago Board of Trade soybean futures ended higher Friday, buoyed with crop uncertainties associated with weather issues in the northern Midwest and southern soybean belt.

 

September soybeans settled 7 cents higher at US$8.49, and November soybeans finished 6 3/4 cents higher at US$8.65.

 

With the September harvest season approaching, there will be less weather factors to trade on, and the November contract may see strong resistance at US$8.65, said Xu Wenjie, an analyst at Tianma Futures Co.

 

However, analysts expected soybean prices to remain at current high levels on high freight rates and increasing demand.

 

They said the increasing U.S. soybean crushing volume and recovering domestic soymeal demand from the feedmeal sector will continue to support soybean prices.

 

Soymeal futures and soyoil futures both settled mixed as well.

 

The benchmark May 2008 soymeal contract settled RMB9 lower at RMB2,890/tonne, and the benchmark January 2008 soyoil contract settled RMB14 higher at RMB8,040/tonne.

 

Corn futures settled higher.

 

The benchmark May 2008 contract settled RMB8 higher at RMB1,589/tonne.

 

Trading volume for all corn contracts declined to 301,268 lots from 454,950 lots Friday.