October 24, 2006

 

Tuesday: China soybean futures settle mostly higher on CBOT gains

 

 

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

 

The benchmark January 2007 contract rose RMB11 to settle at RMB2,581 a metric tonne, after trading between RMB2,572/tonne and RMB2,587/tonne.

 

Total trading volume rose to 41,214 lots from 26,842 lots Monday.

 

One lot is equivalent to 10 tonnes.

 

"Soybean futures opened higher today, thanks to CBOT gains, but fell in the later session on long selling," said Liu Xinghua, an analyst at Great Wall Futures Co.

 

"Prices of imported soybeans held firm, lending some support to soybean futures," said Xu Wenjie, an analyst at Tianma Futures Co.

 

Soymeal futures settled higher. The benchmark May 2007 soymeal contract rose RMB24 to settle at RMB2,384/tonne, after trading between RMB2,375/tonne and RMB2,394/tonne.

 

Total trading volume rose to 147,692 lots from 115,134 lots Monday.

 

"Trading volume increased only moderately, as speculators lacked confidence in soymeal and weren't very active in trading," said Liu.

 

Xu concurred, adding that "although spot prices gained a little recently, demand showed no signs of a substantial recovery."

 

Soyoil futures settled higher. The most widely held January 2007 soyoil contract settled RMB65 higher at RMB5,831/tonne.

 

Corn futures settled higher. The benchmark May 2007 contract rose RMB11 to settle at RMB1,476/tonne, after trading between RMB1,473/tonne and RMB1,480/tonne.

 

Total trading volume for corn rose to 302,526 lots from 232,006 lots Monday.

 

"In addition to gains in corn futures on CBOT, corn futures also found support from domestic demand that held firm lately," Liu said.

 

"Long buying was witnessed today as investors built up positions," he added.