November 2, 2006

 

Thursday: China soybean futures settle higher on CBOT gains

 

 

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

 

The most active May 2007 contract rose RMB57 to settle at RMB2,841 a metric tonne, after trading between RMB2,828 and RMB2,864/tonne.

 

Total trading volume rose to 159,700 lots from 78,898 lots Wednesday. One lot is equivalent to 10 tonnes.

 

"(Soybean) futures opened higher on the CBOT rise, but gains narrowed a bit in the later session due to short selling," said Zhang Yifan, a trader at China Grains & Oils Group Feed Co.

 

"Domestic stock levels of soybeans are still high, pressuring futures," he added.

 

Soymeal futures settled up. The benchmark May 2007 soymeal contract rose RMB40 to settle at RMB2,429/tonne, after trading between RMB2,416 and RMB2,450/tonne.

 

Total trading volume rose to 253,722 lots from 169,222 lots Wednesday.

 

"With demand remaining sluggish, today's rises were mainly driven by gains in soy futures on CBOT," said Gao Yanrong, an analyst at Dalu Futures Co.

 

Soyoil futures settled higher. The most active May 2007 soyoil contract settled up RMB155 at RMB6,275/tonne.

 

"Soyoil prices have soared lately in the spot market, supporting futures," said Gao.

 

Prices of imported soybeans, which are used to produce soyoil in China, have rising sharply in line with gains on CBOT.

 

Corn futures settled up. The benchmark May 2007 contract settled RMB17 higher at RMB1,488/tonne, after trading between RMB1,484 and RMB1,497/tonne.

 

Total trading volume for corn rose to 442,350 lots from Wednesday's 267,574 lots.

 

"Today's gains in corn futures were relatively moderate compared with overnight CBOT rises. Investors are still concerned about the ongoing harvest, which will probably impact corn prices in the near future," Gao added.