November 6, 2006

 

Monday: China soybean futures settle mostly higher on CBOT gains

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled mostly higher Monday, supported by rises in soy futures Friday on the Chicago Board of Trade, an analyst said.

 

However, the most active May 2007 contract was unchanged, settling at RMB2,820 a metric tonne after trading between RMB2,808 and RMB2,831/tonne.

 

Total trading volume fell to 73,480 lots from 86,788 lots Friday. One lot is equivalent to 10 tonnes.

 

"Newly harvested soybeans have entered the market on a large scale lately, weighing on futures," said Li Honglei, an analyst at Nanhua Futures Co.

 

"Besides harvest pressure, high soybean stocks also pressured soybean futures," he added.

 

Soymeal futures settled mostly up. The benchmark May 2007 soymeal contract rose RMB10 to settle at RMB2,421/tonne, after trading between RMB2,401 and RMB2,433/tonne.

 

Total trading volume fell to 129,932 lots from 158,422 lots Friday.

 

"Speculative buying was witnessed today, as market sentiment still tended to be bullish, thanks to recent CBOT gains." Li said.

 

"Freight costs rose a tad this week, also offering help to soymeal futures," he added.

 

Soyoil futures settled mostly lower, The most active May 2007 soyoil contract settled RMB6 down at RMB6,252/tonne.

 

Corn futures settled mostly higher. The benchmark May 2007 contract settled RMB1 higher at RMB1,494/tonne, after trading between RMB1,484 and RMB1,503/tonne.

 

Total trading volume for corn dropped to 551,072 lots from Friday's 804,506 lots.

 

"Corn futures found borrowed support from rises in soymeal futures today. Profit-taking was seen in the late session, showing futures met resistance at the current price level. Furthermore, harvest pressure is surfacing, also weighing on corn futures," Li added.