November 15, 2006

 

Wednesday: China soybean futures settle higher, tracking CBOT gains

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled up Wednesday, largely tracking overnight gains in soybean futures on the Chicago Board of Trade.

 

"Dalian soybean futures didn't seem to factor in local factors much and tracked CBOT futures," a trader with a Beijing-based grains trading company said.

 

The most active May 2006 soybean contract settled up RMB28 at RMB2,683 a metric tonne.

 

Trading volume jumped to 122,422 lots from 72,122 lots Tuesday.

 

One lot equals 10 tonnes.

 

Soymeal futures settled mostly higher, with the most active May 2007 contract gaining RMB21 to settle at RMB2,456/tonne.

 

Demand for soymeal in China's local markets has improved in recent weeks due to higher purchases from animal feed manufacturers.

 

Volume rose to 217,578 tonnes from 174,568 tonnes Tuesday.

 

Soyoil futures also settled mostly higher, with the benchmark May 2007 contract settling up RMB121 at RMB6,427/tonne.

 

Volume was lower at 67,234 lots compared with 73,520 lots Tuesday.

 

Corn futures also settled higher as domestic corn prices continue to remain firm in China in addition to sharp gains in corn futures on CBOT overnight.

 

The benchmark May 2007 contract settled RMB20/tonne higher at RMB1,577/tonne.

 

Trading volume was 1.29 million lots compared with 1.33 million lots Tuesday.