December 6, 2006

 

Wednesday: China soybean futures settle mostly higher on CBOT gains

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mostly up Wednesday, supported by overnight gains in soybean futures on the Chicago Board of Trade, analysts said.

 

The benchmark May 2007 contract settled RMB6 higher at RMB2,830 a metric tonne, after trading between RMB2,807/tonne and RMB2,845/tonne.

 

Total trading volume declined to 85,836 lots from 91,380 lots Tuesday. One lot is equivalent to 10 tonnes.

 

"Soybean futures prices opened higher today on CBOT gains," said Zhang Yifan, a trader at China Grains & Oils Group Feed Corp.

 

However, "gains were narrowed in the late session, pressured by long liquidation," he added.

 

Soymeal futures settled lower, despite gains on CBOT, pressured by a combination of losses in spot prices and overstocking, analysts said.

 

The benchmark May 2007 soymeal contract fell RMB4 to settle at RMB2,306/tonne, after trading between RMB2,288/tonne and RMB2,324/tonne.

 

Total trading volume fell to 121,424 lots from 125,192 lots Tuesday.

 

"Some crushing companies had to halt production recently as overstocking has pushed down soymeal prices on the spot market," Zhang said.

 

Soyoil futures settled up. The benchmark May 2007 soyoil contract gained RMB43 to settle at RMB6,671/tonne.

 

Corn futures settled higher. The benchmark May 2007 contract settled RMB9 higher at RMB1,567/tonne, after trading between RMB1,561/tonne and RMB1,575/tonne.

 

Total trading volume for corn declined to 587,288 lots from 960,652 lots Tuesday.

 

"Corn prices held firm on the spot market across the country this week, offering solid support to (corn) futures," Zhang added.