November 17, 2006

 

Friday: China soybean futures settle mostly higher on spot prices

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled mostly higher Friday, supported by strong spot prices, analysts said.

 

The most active May 2007 contract settled RMB3 higher at RMB2,913 a metric tonne, after trading between RMB2,896 and RMB2,934/tonne.

 

Total trading volume fell to 191,740 lots from 207,618 lots Thursday. One lot is equivalent to 10 tonnes.

 

"Despite overnight losses in soybean futures on the Chicago Board of Trade, soybean futures gained mostly today, thanks to rises in soybean prices in the spot market," said Gao Yanrong, an analyst at Dalu Futures Co.

 

Soybean prices were quoted at RMB2,420-RMB2,440 a metric tonne this week in Heilongjiang province, a major soybean producing region, up RMB80 on average from last week, according to local traders.

 

"Gains in prices of imported soybeans also provided support to soybean futures," Gao added.

 

Soymeal futures settled down. The benchmark May 2007 soymeal contract fell RMB14 to settle at RMB2,458/tonne, after trading between RMB2,446 and RMB2,473/tonne.

 

Total trading volume fell to 197,306 lots from 313,698 lots Thursday.

 

"Overnight falls in soy futures on CBOT weighed on soymeal futures. Futures fell on short selling," said Li Honglei, an analyst at Nanhua Futures Co.

 

"Demand for soymeal has not been as strong as that for soybeans lately," he added.

 

Soyoil futures settled mixed. The most active May 2007 soyoil contract settled down RMB1 at RMB6,487/tonne.

 

Corn futures settled mostly lower. The benchmark May 2007 contract settled RMB4 lower at RMB1,579/tonne, after trading between RMB1,570 and RMB1,586/tonne.

 

Total trading volume for corn fell to 756,326 lots from Thursday's 974,400 lots.

 

"Corn price fell RMB50 today in the spot market in Guangdong province, pressuring futures," Li said.

 

Guangdong is a major corn consuming region in southern China.