October 10, 2007

 

Wednesday: China soybean futures settle up on strong CBOT rise

 

 

Soybean futures traded on the Dalian Commodity Exchange settled higher Wednesday on a sharp overnight rise in their counterpart at the Chicago Board of Trade.

 

The benchmark May 2008 soybean contract settled RMB78 higher at RMB4,163 a metric tonne.

 

Total trading volume rose to 699,724 lots from 611,230 lots Tuesday. One lot is equivalent to 10 tonnes.

 

Worries over planting delays in Brazil and uncertainty over U.S. soybean output, as well as a rumor that the U.S. Department of Agriculture may trim its 2007 acreage forecasts in Friday's crop report buoyed CBOT soybean futures.

 

The USDA is scheduled to release its latest production, yield and supply and demand estimates Friday at 8:30 a.m. EDT.

 

Meanwhile, domestic soybean output and quality in 2007 will not be as good as that of last year due to a drought in major producing regions, making supply more tight, said analysts.

 

Soybean prices are likely to remain high in the longer run as the recovery of the livestock breeding sector will boost demand for feedmeal, while high crude oil prices will also support soyoil prices, said Dalu Futures.

 

Soymeal futures and soyoil futures settled mostly higher.

 

The benchmark May 2008 soymeal contract settled RMB65 higher at RMB3,153/tonne, and the benchmark May 2008 soyoil contract settled RMB110 higher at RMB8,478/tonne.

 

Corn futures settled lower.

 

The benchmark May 2008 contract settled RMB4 lower at RMB1,660/tonne.

 

Total trading volume for all corn futures declined to 439,902 lots from 555,394 lots Tuesday.