September 13, 2007

 

Thursday: China soybean futures settle sharply up on CBOT soy strength

 

 

Soybean futures traded on the Dalian Commodity Exchange settled sharply up Thursday on bullish sentiment fueled by gains in the Chicago Board of Trade soybean futures overnight, analysts said.

 

The benchmark May 2008 soybean contract rose RMB58 higher at RMB4,066 a metric tonne, after trading between RMB4,035/tonne and RMB4,093/tonne.

 

Total trading volume rose to 971,912 lots from 613,170 lots Wednesday. One lot is equivalent to 10 tonnes.

 

"It's the overall bullish sentiment in agriculture products that has attracted continuous inflows of money, which in turn drove prices up further," said Yu Junli, a senior analyst with Green Futures Co.

 

"The overnight USDA report further strengthened the expectations of higher prices," Yu said.

 

The U.S. Department of Agriculture on Wednesday lowered its forecasts for U.S. soybean production to 2.619 billion bushels, down from its August prediction of 2.625 billion, citing lower-than-expected yields.

 

Soymeal futures settled mixed. The benchmark May 2008 contract settled RMB15 lower at RMB3,118/tonne.

 

Soyoil futures settled mostly higher. The most active May 2008 contract settled RMB122 higher at RMB8,300/tonne.

 

Corn futures settled a tad up on spillover strength of strong gains in soybean futures, analysts said.

 

The benchmark May 2008 contract rose RMB10 to settle at RMB1,681/tonne.

 

Trading volume for all corn contracts fell to 620,100 lots from 624,504 lots Wednesday.