September 22, 2006

 

Friday: China soybean futures settle higher, tracking CBOT gains

 

 

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

 

The benchmark January 2007 contract settled RMB7 higher at RMB2,552 a metric tonne, after trading between RMB2,548 and RMB2,558/tonne.

 

Total trading volume rose to 9,526 lots from 8,522 lots Thursday. One lot is equivalent to 10 tonnes.

 

"Soybean futures opened higher on CBOT's gains but fell (slightly) in the late session," said Tian Lianfeng, an analyst at Tianma Futures Co.

 

"Large import arrivals still stockpiled at major ports weighed on futures," he added

 

No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops, settled higher. But the benchmark November 2006 contract was unchanged.

 

Soymeal futures settled mostly higher. The benchmark January 2007 contract settled up RMB10 at RMB2,236/tonne, after trading between RMB2,231 and RMB2,242/tonne.

 

Total trading volume for soymeal rose to 56,688 lots from 51,178 lots Thursday.

 

"Prices of imported soybeans have shown a clear trend of picking up lately, offering support to soymeal futures," Tian said.

 

However, "market sentiment is cautious, as demand for feed is not as strong as expected. Speculators wanted to pull out and liquidate positions," said Gao Yanrong, an analyst at Dalu Futures Co.

 

Soyoil settled higher, The benchmark January 2007 contract rose RMB12 to settle at RMB5,553/tonne.

 

Corn futures settled higher along with soyoil futures. The benchmark May 2007 contract settled at RMB1,403/tonne, up RMB4/tonne.

 

Total trading volume for corn rose to 289,894 lots from 234,362 lots Thursday.

 

"Corn futures rose today, finding some support from CBOT's gains. Concern over the current oversupply situation remains, as the new harvest is widely expected to be good," Tian said.

 

But "investors continued to build up positions, showing they are still optimistic on corn," Gao added.