October 27, 2006

 

Friday: China soybean futures settle higher on CBOT gains

 

 

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

 

The benchmark January 2007 contract rose RMB44 to settle at RMB2,616 a metric tonne, after trading between RMB2,582 and RMB2,639/tonne.

 

Total trading volume jumped to 143,862 lots from 22,966 lots Thursday. One lot is equivalent to 10 tonnes.

 

"(Soybean) futures rose remarkably, catching up with earlier gains on CBOT," said Zhang Yifan, a trader at China Grains & Oils Group Feed Corp.

 

"It may mark the beginning of a bullish market for soy futures over a long term," he added.

 

"The trading volume rose sharply, as speculators pulled out of metal futures and invested in soy futures," said Zeng Xuezhou, an analyst at Beite Futures Co.

 

Soymeal futures settled up. The benchmark May 2007 soymeal contract increased RMB47 to settle at RMB2,416/tonne, after trading between RMB2,382 and RMB2,434/tonne.

 

Total trading volume rose to 386,628 lots from 115,038 lots Thursday.

 

"A large amount of fresh buying was witnessed today, with investors building up positions," said Zeng.

 

"Demand for feed has shown signs of a recovery lately, also providing help to soymeal futures," Zhang said.

 

Soyoil futures settled higher, along with other soy futures. The most widely held January 2007 soyoil contract settled RMB125 higher at RMB5,984/tonne.

 

"Soyoil prices in the spot market rose significantly this week, supporting futures," Zhang said.

 

Soyoil prices were quoted at RMB6,100-RMB6,150/tonne in Heilongjiang province, a major soybean growing region, up over RMB100 from last week.

 

Corn futures settled higher. The benchmark May 2007 contract settled RMB18 higher at RMB1,482/tonne, after trading between RMB1,470 and RMB1,490/tonne.

 

Total trading volume for corn rose to 536,872 lots from Thursday's 241,846 lots.

 

"Corn futures gained today as well, finding borrowed support from soy futures," Zhang said.

 

"Despite pressure from the ongoing harvest, investors are still positive about corn futures, with demand for corn expected to rise steadily over a long term," added Zeng.