November 13, 2006

 

Monday: China soybean futures settle higher on corn futures gains

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled up Monday on spillover support from gains in corn futures, analysts said.

 

The most active May 2007 contract settled RMB17 higher at RMB2,843 a metric tonne after trading between RMB2,816/tonne and RMB2,856/tonne.

 

Total trading volume rose to 98,930 lots from 43,482 lots Friday.

 

One lot is equivalent to 10 tonnes.

 

"(Soybean) futures opened lower today, pressured by losses in soybean futures on the Chicago Board of Trade Friday, but picked up soon after, finding borrowed support from gains in neighboring corn futures," Nanhua Futures Co. analyst Li Honglei said.

 

Soymeal futures settled mostly up. The benchmark May 2007 soymeal contract rose RMB12 to settle at RMB2,447/tonne after trading between RMB2,422/tonne and RMB2,463/tonne.

 

Total trading volume rose to 196,134 lots from 128,280 lots Friday.

 

"With fundamentals little changed, soymeal futures prices rose today on technical buying, also propelled by rises in corn futures prices," Jingyi Futures Co. analyst Kang Bing said.

 

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

 

Corn futures settled noticeably higher. The benchmark May 2007 contract settled RMB32 higher at RMB1,543/tonne after trading between RMB1,513/tonne and RMB1,562/tonne.

 

Total trading volume for corn jumped to 1,491,998 lots from Friday's 569,898 lots.

 

"Corn futures gained considerably today, thanks to rises in spot prices in Guangdong province, which were quoted around RMB1,600/tonne today, up by around RMB70 from last Friday's RMB1,530/tonne," Li said.

 

Guangdong is a major consumer province in southern China.

 

"Speculative long buying was seen throughout today's session, indicating investors are increasingly bullish about corn futures," Kang added.