November 27, 2006

 

Monday: China soybean futures settle up on CBOT, soyoil

 

 

Soybean futures traded on the Dalian Commodity Exchange settled higher, due to rises in soybean futures on Chicago Board of Trade Friday and borrowed support from soyoil futures gains, analysts said.

 

The benchmark May 2007 contract settled RMB62 higher at RMB2,964 a metric tonne, after trading between RMB2,952/tonne and RMB2,980/tonne.

 

Total trading volume rose to 210,814 lots from 188,966 lots Friday. One lot is equivalent to 10 tonnes.

 

"CBOT gains coupled with spillover effects of rises in neighboring soyoil futures contributed to gains in soybean futures today," said Li Honglei, an analyst at Nanhua Futures Co.

 

"Rises in spot prices are expected to continue, as prices of imported soybeans are still higher than those of Chinese soybeans, offering help to soybean futures," said Xu Wenjie, an analyst at Tianma Futures Co.

 

Soymeal futures settled up, in line with soybean futures. However, rises in soymeal futures were relatively moderate, pressured by weak fundamentals, analysts said.

 

The benchmark May 2007 soymeal contract rose RMB35 to settle at RMB2,460/tonne, after trading between RMB2,447/tonne and RMB2,478/tonne.

 

Total trading volume jumped to 200,986 lots from 140,270 lots Friday.

 

"Demand for soymeal remained sluggish lately, weighing on (soymeal) futures prices," Xu said.

 

"Gains in soymeal futures were narrowed on profit-taking in the late session today," Li added.

 

Soyoil futures settled up. The benchmark May 2007 soyoil contract rose RMB154 to settle at RMB6,789/tonne.

 

"Soyoil prices continue to rise on the spot market in major soybean producing regions this week, supporting soyoil futures prices," said Li.

 

Corn futures settled higher amid bullish market sentiment, analysts said.

 

The benchmark May 2007 contract settled RMB42 higher at RMB1,628/tonne, after trading between RMB1,600/tonne and RMB1,649/tonne.

 

Total trading volume for corn rose to 1,655,464 lots from 768,322 lots Friday.

 

"The market is still optimistic about long-term demand for corn from processors. Investors were increasingly moving to forward contracts," Xu added.