September 28, 2006

 

Thursday: China soybean futures settled mixed, trading volume down

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled mixed Thursday, with the trading volume continuing to fall before the week-long National Day holidays, an analyst said.

 

The benchmark January 2007 contract settled unchanged at RMB2,535 a metric tonne, after trading between RMB2,530/tonne and RMB2,538/tonne.

 

Total trading volume dropped to 3,220 lots from 7,362 lots Wednesday. One lot is equivalent to 10 tonnes.

 

"Trading volume continued to decline today with investors liquidating positions before the week long National Day holidays," said Li Honglei, an analyst at Nanhua Futures Co.

 

"The weight of overnight losses on the Chicago Board of Trade was offset by rises in e-CBOT," said Li.

 

China's Dalian Commodity Exchange will close during the week long National Day holidays from Oct. 1-7.

 

No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops, settled up. The most active March 2007 contract rose RMB25 to RMB2,563/tonne.

 

Soymeal futures settled mostly lower. But the benchmark January 2007 contract rose RMB1 to RMB2,209/tonne, after trading between RMB2,206/tonne and RMB2,214/tonne.

 

The total trading volume for soymeal fell to 40,768 lots from 82,134 lots Wednesday.

 

"Investors were cautious before the long holidays and liquidated positions. The trading volume dived," Li said, adding "spot prices dropped as well, as pre-holiday buying ended."

 

Soyoil settled higher, with the benchmark January 2007 contract up RMB20 to settle at RMB5,457/tonne.

 

"Increases in international oil prices lent some support to soyoil futures today," Li added.

 

Corn futures settled mostly higher, but the benchmark May 2007 contract settled unchanged at RMB1,400/tonne.

 

The total trading volume for corn fell to 111,476 lots from 158,112 lots Wednesday.

 

"Just like soy futures, trading of corn futures is quiet before the holidays as investors are uncertain of how the CBOT will perform next week," Li added.