September 26, 2006

 

Tuesday: China soybean futures settle mostly up on e-CBOT gains

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled mostly moderately higher Tuesday, tracking gains on e-CBOT analysts said.

 

The benchmark January 2007 contract settled RMB6 higher at RMB2,541 a metric tonne, after trading between RMB2,532/tonne and RMB2,544/tonne.

 

Total trading volume dropped to 9,976 lots from 11,064 lots Monday. One lot is equivalent to 10 tonnes.

 

"Despite overnight losses on the Chicago Board of Trade, rises in e-CBOT lent some support to soybean futures today," said Zhang Yifan, a trader at China Grains & Oils Group Feed Corp.

 

"Trading volume was thin, as market sentiment tended to be cautious due to uncertainty over the upcoming harvest," Zhang added.

 

No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops, settled lower. The most active January 2007 contract dropped RMB30 to RMB2,517/tonne.

 

Soymeal futures settled mostly lower. But the benchmark January 2007 contract settled unchanged at RMB2,215, after trading between RMB2,209/tonne and RMB2,220/tonne.

 

Total trading volume for soymeal fell to 50,434 lots from 82,738 lots Monday.

 

"Trading volume dropped and investors liquidated positions before the National Day holidays, during which CBOT will have five trading days," Zhang said.

 

China's Dalian Commodity Exchange will close during the week-long National Day holidays in early October.

 

Soyoil settled mostly lower, with the benchmark January 2007 contract down RMB1 to settle at RMB5,473/tonne.

 

Corn futures settled mostly higher, with the benchmark May 2007 contract up RMB3/tonne at RMB1,397/tonne.

 

Total trading volume for corn fell to 103,532 lots from 237,738 lots Monday.

 

"Currently, market opinions differ over the new harvest of corn (in October and November). Forecasts for the output ranged from 141 million tonnes to 147 million tonnes," Zhang said.

 

"As such, corn futures will see frequent prices fluctuations these days," Zhang added.

 

However, a "recovery in prices of crude oil and metals futures from earlier losses on the international market supported corn futures to some extent today," said Kang Bing of Jingyi Futures Co.