November 9, 2006

 

Thursday: China soybean futures settle mostly higher on CBOT gains

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled mostly higher Thursday on overnight gains in soybean futures on the Chicago Board of Trade.

 

The most active May 2007 contract settled RMB8 higher at RMB2,842 a metric tonne, after trading between RMB2,832/tonne and RMB2,852/tonne.

 

Total trading volume rose to 103,766 lots from 79,350 lots Wednesday.

 

One lot is equivalent to 10 tonnes.

 

"(Soybean) futures opened higher on CBOT gains, but fell soon after in the early session, pressured by long selling," said Li Honglei, an analyst at Nanhua Futures Co.

 

"Futures prices regained a tad in the late session, borrowing support from rises in neighboring futures such as rubber and sugar," Li said.

 

"Prices of imported soybeans jumped to over RMB2,990/tonne this week, also lending strength to soybean futures," he added.

 

Soymeal futures settled up, along with soybean futures. The benchmark May 2007 soymeal contract rose RMB14 to settle at RMB2,456/tonne, after trading between RMB2,444/tonne and RMB2,466/tonne.

 

Total trading volume rose to 236,898 lots from 227,490 lots Wednesday.

 

"The monthly report on demand and supply to be published by the U.S. Department of Agriculture Thursday is expected to reduce forecasts for supplies, adding to the bullish sentiment," said Gao Yanrong, an analyst at Dalu Futures Co.

 

Soyoil futures settled mostly lower. The most active May 2007 soyoil contract settled RMB24 down at RMB6,249/tonne.

 

Corn futures settled mostly down. The benchmark May 2007 contract settled RMB2 lower at RMB1,520/tonne, after trading between RMB1,516/tonne and RMB1,531/tonne.

 

Total trading volume for corn rose to 748,396 lots from Wednesday's 744,438 lots.

 

"Corn futures opened higher today, supported by overnight rises in corn futures on CBOT, but fell in the later session, due to short selling," Li said.

 

"Corn futures are not expected to gain substantially over next two months as supplies remain strong, with the new harvest entering the market," he added.