September 18, 2006

 

Monday: China soybean futures settle up on CBOT gains

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled higher on soybean futures gains on Chicago Board of Trading Friday, analysts said.

 

The most active January 2007 contract settled RMB12 higher at RMB2,564 a metric tonne, after trading between RMB2,562/tonne and RMB2,568/tonne.

 

Total trading volume dropped to 16,392 lots from 17,908 Friday. One lot is equivalent to 10 tonnes.

 

"Gains on CBOT Friday and e-CBOT today provided support to soybean futures," said Zhang Yifan, an analyst at China Grain & Oils Group Feed Corp.

 

Gao Yanrong, an analyst at Dalu Futures Co., added "the trading volume remained thin as investors were still cautious, waiting for the new harvest."

 

No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops, settled mostly lower. But the benchmark September contract was unchanged.

 

Soymeal futures settled higher. The benchmark January 2007 contract rose RMB18/tonne to settle at RMB2,245/tonne, after trading between RMB2,242/tonne and RMB2,250/tonne.

 

Total trading volume for soymeal fell to 93,352 lots from 99,494 lots Friday.

 

"Prices for soymeal held stable on the spot market, with small gains in some regions offering help to futures," Gao said

 

"The trading volume dropped, indicating prudent market sentiment," Zhang added.

 

Soyoil settled lower. The most widely held January 2007 contract declined RMB14 to settle at RMB5,621/tonne.

 

"Soyoil futures prices remained at a pretty high level, with frequent fluctuations. Today's losses were a downward correction," Gao said.

 

Corn futures settled mostly up. The benchmark May 2007 contract settled at RMB1,417/tonne, up RMB3/tonne.

 

Total trading volume for corn fell to 163,114 lots from 354,980 lots Friday.

 

"Investors still tend to be bullish on corn futures over the long run," said Zhang.

 

"However, trading was not very active today amid weak market sentiment, due to sluggish demand in southern provinces, in addition to uncertainty over the new harvest," he added.