October 30, 2006

 

Monday: China soybean futures settled higher on fresh buying

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled up considerably Monday, supported by fresh speculative buying, analysts said.

 

The most active May 2007 contract rose RMB46 to settle at RMB2,823 a metric tonne, after trading between RMB2,789/tonne and RMB2,844/tonne.

 

Total trading volume jumped to 195,678 lots from 143,862 lots Friday.

 

One lot is equivalent to 10 tonnes.

 

"(Soybean) futures prices rose on fresh buying, catching up gains on Chicago Board of Trade Friday, as speculators turned active in investing in soy futures," said Kang Bing, an analyst at Jingyi Futures Co.

 

"Soybean prices gained visibly on the spot market last week, offering help to futures prices," said Xu Wenjie, an analyst at Tianma Futures Co.

 

Soymeal futures settled up. The benchmark May 2007 soymeal contract increased RMB13 to settle at RMB2,429/tonne, after trading between RMB2,408/tonne and RMB2,455/tonne.

 

Total trading volume rose to 394,454 lots from 386,628 lots Friday.

 

"In addition to CBOT gains, soymeal futures also found support from demand for feed which showed a trend of recovery lately," Xu said.

 

Soyoil futures settled higher, along with other soy futures. The most active May 2007 soyoil contract settled RMB182 higher at RMB6,187/tonne.

 

"Besides recent gains in soyoil futures on CBOT, domestic soyoil prices that jumped last week offered strength to soyoil futures as well," Xu said.

 

Corn futures settled mostly lower. The benchmark May 2007 contract settled RMB3 lower at RMB1,479/tonne, after trading between RMB1,473/tonne and RMB1,486/tonne.

 

Total trading volume for corn dropped to 410,822 lots from Friday's 536,872.

 

"Corn prices on the spot market were sluggish lately aid harvest pressure, weighing on futures," Xu said "Corn futures prices will probably hold at the current level with small fluctuations in the near futures," Kang added.