October 19, 2006

 

Thursday: China soybean futures settle up on CBOT gains

 

 

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

 

The benchmark January 2007 contract rose RMB13 to settle at RMB2,591 a metric tonne, after trading between RMB2,577/tonne and RMB2,604/tonne.

 

Total trading volume rose to 61,446 lots from 30,304 lots Wednesday. One lot is equivalent to 10 tonnes.

 

"Soy futures prices rose today on CBOT gains," said Liu Xinghua, an analyst at Great Wall Futures Co.

 

"Soybean prices held firm on the spot market despite the harvest pressure, lending support to futures prices," he added.

 

Soymeal futures settled mostly higher. The most active May 2007 soymeal contract rose RMB4 to settle at RMB2,387/tonne, after trading between RMB2,377/tonne and RMB2,399/tonne.

 

Total trading volume fell to 195,982 lots from 273,050 lots Wednesday.

 

"Fresh buying was seen today as speculators became more active in investing in soy futures amid the positive market sentiment," Liu said.

 

"In addition to the recovery in demand, recent rises in prices for imported soybeans also lent strength to soymeal futures prices," said Li Honglei, an analyst at Nanhua Futures Co.

 

Soyoil futures settled mostly up. The most widely held January 2007 soyoil contract settled RMB51 higher at RMB5,699/tonne.

 

Corn futures settled mostly lower. The benchmark May 2007 contract fell RMB2 to settle at RMB1,466/tonne, after trading between RMB1,455/tonne and RMB1,474/tonne.

 

Total trading volume for corn fell to 319,730 lots from Wednesday's 470,354.

 

"Corn futures prices opened lower today, pressured by losses in corn futures on CBOT, but rose in the late session, finding borrowed support from gains in soy futures," Li added.