September 14, 2006

 

Thursday: China soybean futures settle mostly up; NE prices higher

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled mostly higher Thursday as prices of soymeal and soyoil in soybean-producing regions rose, analysts said.

 

The most active January 2007 contract settled RMB18 higher at RMB2,556 a metric tonne, after trading between RMB2,548/tonne and RMB2,562/tonne.

 

Total trading volume rose to 49,426 lots from 22,876 lots Wednesday. One lot is equivalent to 10 tonnes.

 

"Prices for soymeal and soyoil have risen considerably lately in China's northeast, a major soybean-producing region, supporting futures," said Li Honglei, an analyst at Nanhua Futures Co.

 

"Overnight gains on the Chicago Board of Trade helped soybean futures as well," said Tian Lianfeng, 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 higher. The benchmark September contract settled at RMB2,523/tonne, up RMB43.

 

Soymeal futures settled mostly higher. The benchmark January 2007 contract rose RMB15 to settle at RMB2,231/tonne, after trading between RMB2,225/tonne and RMB2,238/tonne.

 

Total trading volume for soymeal fell to 122,878 lots from 237,444 lots Wednesday.

 

"Price increases on the spot market offered some help to soymeal futures," Li said.

 

"However, investors turned cautious as the monthly supply/demand report released Tuesday by the U.S. Dempartment of Agriculture increased production forecasts, weighing on prices for imported soybeans," he added.

 

Soyoil settled mostly higher. The most widely held January 2007 contract rose RMB9 to settle at RMB5,657/tonne.

 

Corn futures settled mostly up. The benchmark May 2007 contract settled at RMB1,413/tonne, up RMB10.

 

Total trading volume for corn rose to 280,332 lots from 245,166 lots Wednesday.

 

"Investors, building up positions, are still positive about corn. In addition, rises in fuel oil and metal futures (prices) today lent support to corn futures in a spillover effect," Tian added.