September 11, 2006

 

Monday: China soybean futures settle mostly up on higher demand

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled mostly higher Monday, as demand is expected to increase with spot soyoil prices looking up, analysts said.

 

The most active January 2007 contract settled RMB4 higher at RMB2,556 a metric tonne, after trading between RMB2,540/tonne and RMB2,570/tonne.

 

Total trading volume rose to 39,120 lots from 14,106 lots Friday. One lot is equivalent to 10 tonnes.

 

"Spot prices for soyoil have jumped by around RMB20/tonne in major soybean producing regions such as Heilongjiang province, lately, providing support to soybean futures," said Li Honglei, an analyst at Nanhua Futures Co.

 

"Soybean futures dropped in the late session, pressured by losses on e-CBOT," said Shi Junfeng, an analyst at Tianma Futures Co

 

No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops, settled mostly lower. The benchmark September contract settled at RMB2,470/tonne, down RMB128/tonne.

 

Soymeal futures settled lower. The benchmark January 2007 contract dropped RMB16/tonne to settle at RMB2,228/tonne, after trading between RMB2,213/tonne and RMB2,244/tonne.

 

Total trading volume for soymeal rose to 184,684 lots from 112,810 lots Friday.

 

"The U.S. Department of Agriculture will publish its monthly report on supply and demand tomorrow, in which the market expects the USDA to increase its forecasts for the U.S. soybean output, pressuring soymeal futures," Li said.

 

Soyoil settled mostly higher. The most widely held January 2007 contract increased RMB20 to settle at RMB5,653/tonne.

 

"Increases in spot prices help soyoil futures today," Li said, adding "soyoil futures fell in the late session on profit taking."

 

Corn futures settled mostly lower. The benchmark May 2007 contract settled at RMB1,416/tonne, down RMB5/tonne.

 

Total trading volume for corn increased to 348,204 lots from 337,284 lots Friday.

 

"Corn futures fell today, mainly due to spillover effects of metal futures losses," Shi said.

 

"Media reports that (the government) will take more tightening measures also weighed on corn futures," Li added.