November 8, 2006

 

Wednesday: China soybean futures settle mostly up on CBOT gains

  

 

Soybean futures traded on China's Dalian Commodity Exchange settled mostly higher, supported by overnight rises in soybean futures on Chicago Board of Trade, analysts said.

 

The most active May 2007 contract settled RMB8 higher at RMB2,834 a metric tonne, after trading between RMB2,828/tonne and RMB2,840/tonne.

 

Total trading volume rose to 79,350 lots from 69,692 lots Tuesday.

 

One lot is equivalent to 10 tonnes.

 

"Soybean futures prices rose today on CBOT gains," said Zhang Yifan, a trader at China Grains & Oils Group Feed Corp.

 

However, (soybean) futures prices may find resistance if they continue to rise, as the pressure of the new harvest is surfacing, he added.

 

Soymeal futures settled up. The benchmark May 2007 soymeal contract rose RMB12 to settle at RMB2,442/tonne, after trading between RMB2,432/tonne and RMB2,454/tonne.

 

Total trading volume rose to 227,490 lots from 169,334 lots Tuesday.

 

"Soymeal futures gained today on long buying amid bullish market sentiment," Zhang said.

 

Soyoil futures settled higher, the most active May 2007 soyoil contract settled RMB18 up at RMB6,273/tonne.

 

Corn futures settled up. The benchmark May 2007 contract settled RMB13 higher at RMB1,522/tonne, after trading between RMB1,516/tonne and RMB1,529/tonne.

 

Total trading volume for corn rose to 744,438 lots from Tuesday's 701,956 lots.

 

"In addition to CBOT gains, corn prices picked up considerably on the spot market this week, offering support to futures," added Zhang.