November 7, 2006

 

Tuesday: China soybean futures settle mixed; CBOT gains modest

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled mostly mixed Tuesday, amid moderate gains on the Chicago Board of Trade overnight.

 

The most active May 2007 contract settled at RMB2,826 a metric tonne, after trading between RMB2,816/tonne and RMB2,838/tonne.

 

Total trading volume fell to 69,692 lots from 73,480 lots Monday. One lot is equivalent to 10 tonnes.

 

"New short positions were witnessed today, as investors were concerned over a possible downward correction on CBOT in the near future," said Zhang Yifan, a trader at China Grains & Oils Group Feed Corp.

 

Soymeal futures settled mostly down. But the benchmark May 2007 soymeal contract rose RMB9 to settle at RMB2,430/tonne, after trading between RMB2,417/tonne and RMB2,443/tonne.

 

Total trading volume rose to 169,334 lots from 129,932 lots Monday.

 

"Prices of imported soybeans are at a high level currently, offering support to soymeal futures," said Tian Lianfeng, an analyst at Tianma Futures Co.

 

"soymeal futures prices climbed a tad in the early session, but gains were then narrowed by profit-taking," Zhang said.

 

Soyoil futures settled mostly higher. The most active May 2007 soyoil contract settled up RMB3 at RMB6,255/tonne.

 

Corn futures settled higher. The benchmark May 2007 contract was up RMB15 at RMB1,509/tonne, after trading between RMB1,501/tonne and RMB1,517/tonne.

 

Total trading volume for corn rose to 701,956 lots from Monday's 551,072.

 

"Corn futures gained on fresh buying today, supported by demand on the spot market, which has been recovering lately," said Zhang.

 

However, "room for further gains is small, as futures prices will meet resistance if they continue to rise," he added.