September 6, 2006

 

Wednesday: China soybean futures settle up on CBOT gains

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled higher Wednesday, in line with overnight gains on the Chicago Board of Trade, analysts said.

 

The most active January 2007 contract settled RMB17 higher at RMB2,565 a metric tonne, after trading between RMB2,550 and RMB2,575/tonne.

 

Total trading volume rose to 26,212 lots from 13,844 lots Tuesday. One lot is equivalent to 10 tonnes.

 

"Soybean futures rose today, following CBOT's gains," said Dong Liang, an analyst at Shanghai Jiuheng Futures Co.

 

"Weather forecasts for frosting conditions in major producing regions (of China's northeast) caused market concerns, adding to the bullishness," he added.

 

No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops, settled higher. The benchmark September contract settled at RMB2,605/tonne, up RMB85/tonne.

 

Soymeal futures settled higher. The benchmark January 2007 contract rose RMB25 to settle at RMB2,267/tonne, after trading between RMB2,254 and RMB2,275/tonne.

 

Total trading volume for soymeal rose to 176,718 lots from 91,888 lots Tuesday.

 

"Soymeal futures' gains extended to today, thanks to fresh buying. The spot market has shown signs of a recovery lately, providing support to futures," Dong said

 

Soyoil settled mostly higher. The most widely held January 2007 contract rose RMB8 to settle at RMB5,603/tonne.

 

Corn futures settled higher. The benchmark May 2007 contract settled at RMB1,410/tonne, up RMB9/tonne.

 

Total trading volume for corn rose to 340,014 lots from 216,214 lots Tuesday.

 

"The rises in soybean and soymeal futures lent some spillover support to corn futures. However, the new harvest, around one month away from now, will put pressure on corn futures," he added.