September 29, 2006

 

Friday: China Soybean futures settle mostly higher on CBOT gains

 

 

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

 

The benchmark January 2007 contract settled at RMB2,544 a metric tonne, up RMB9, after trading between RMB2,538/tonne and RMB2,550/tonne.

 

Total trading volume rose to 9,926 lots from 3,220 lots Thursday. One lot is equivalent to 10 tonnes.

 

"Soybean futures prices rose today, tracking gains on CBOT," said Zhang Yifan, a trader at China Grains & Oils Group Feed Co.

 

However, "futures prices fell a little bit late in the session, which shows the market is still concerned that the new harvest (in October and November) may worsen the current oversupply situation," said Gao Yanrong, an analyst at Dalu Futures Co.

 

No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops, settled down. The most active May 2007 contract fell RMB13 to RMB2,565/tonne.

 

Soymeal futures settled mostly up. The benchmark January 2007 contract rose RMB11 to RMB2,220/tonne, after trading between RMB2,213/tonne and RMB2,225/tonne.

 

Total trading volume for soymeal rose to 79,192 lots from 40,768 lots Thursday.

 

"Despite gains today, investors liquidated positions before the week-long National Day holiday to avoid potential risks," said Zhang.

 

China's Dalian Commodity Exchange will close from Oct. 1-7 for the National Day holiday.

 

Soyoil futures settled higher, with the benchmark January 2007 contract rising RMB29 to settle at RMB5,486/tonne.

 

"In addition to firm CBOT gains, international crude oil prices that held firm lately also offered support to soyoil futures," Zhang said.

 

Corn futures settled mostly higher, with the benchmark May 2007 contract settling at RMB1,406/tonne, up RMB6.

 

Total trading volume for corn rose to 155,024 lots from 111,476 lots Thursday.

 

"Although the new harvest is widely expected to be good, investors believe demand will be strong enough to sustain current corn prices," Gao added.