November 20, 2006

 

Monday: China soybean futures settle up on CBOT gains

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled higher Monday, supported by Friday's gains in soybean futures on the Chicago Board of Trade, analysts said.

 

The most active May 2007 contract settled RMB59 higher at RMB2,972 a metric tonne, after trading between RMB2,931/tonne and RMB2,993/tonne.

 

Total trading volume rose to 302,148 lots from 191,740 lots Friday.

 

One lot is equivalent to 10 tonnes.

 

"(Soybean) futures prices also found support from strong demand on the spot market," said Liu Xinghua, an analyst at Great Wall Futures Co.

 

Soymeal futures settled up. The benchmark May 2007 soymeal contract rose RMB44 to settle at RMB2,502/tonne, after trading between RMB2,480/tonne and RMB2,556/tonne.

 

Total trading volume jumped to 336,738 lots from 197,306 lots Friday.

 

"Trading volume rose considerably today as speculators pulled out of metal futures and invested in grain futures," said Li Honglei, an analyst at Nanhua Futures Co.

 

"(Soymeal) futures prices increased on speculative long buying, with investors building up positions," he added.

 

Soyoil futures settled up, The most active May 2007 soyoil contract settled up RMB242 at RMB6,729/tonne.

 

"Despite soaring prices, demand for soyoil still held stable on the spot market, supporting (soyoil) futures," Liu said.

 

Corn futures settled higher. The benchmark May 2007 contract settled RMB20 higher at RMB1,599/tonne, after trading between RMB1,593/tonne and RMB1,607/tonne.

 

Total trading volume for corn rose to 1,142,888 lots from Friday's 756,326 lots.

 

"Exporters started to buy corn in large quantities on the spot market with the delivery date on the horizon, offering help to corn futures," Liu said.

 

Chinese grains companies signed contracts in September and October to export over 4 million tonne of corn for delivery late this year and early next year, according to local traders.

 

"Demand for feed has been showing a recovery trend lately, propelled by steady rises in prices of pork and poultry," Liu added.