December 8, 2006

 

Friday: China soybean futures settle mostly higher on CBOT gains

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mostly higher Friday, supported by overnight rises in soybean futures on the Chicago Board of Trade, analysts said.

 

The benchmark May 2007 contract settled up RMB12 at RMB2,825 a metric tonne, after trading between RMB2,816/tonne and RMB2,833/tonne.

 

Total trading volume fell to 55,100 lots from 93,126 lots Thursday. One lot is equivalent to 10 tonnes.

 

"CBOT gains provided strength to soybean futures today," said Zhang Yifan, a trader at China Grains & Oils Group Feed Corp.

 

"With fundamentals not expected to change worldwide, domestic soybean futures prices will probably hold stable at the current level next week," said Liu Xinghua, an analyst at Great Wall Futures Co.

 

Soymeal futures settled higher. The benchmark May 2007 soymeal contract rose RMB17 to settle at RMB2,320/tonne, after trading between RMB2,314/tonne and RMB2,330/tonne.

 

Total trading volume fell to 113,442 lots from 187,034 lots Thursday.

 

"Short covering was seen throughout today's sessions, with investors liquidating positions because they don't anticipate further losses," Liu said.

 

Soyoil futures settled mostly down. The benchmark May 2007 soyoil contract lost RMB4 to settle at RMB6,566/tonne.

 

Corn futures settled higher. The benchmark May 2007 contract settled RMB17 higher at RMB1,572/tonne, after trading between RMB1,567/tonne and RMB1,578/tonne.

 

Total trading volume for corn fell to 745,050 lots from 931,456 lots Thursday.

 

"In addition to support from CBOT gains, corn prices that held firm on the spot market also supported (corn) futures prices," Liu said.

 

"Consumption of feed, which is showing signs of picking up toward the year-end, also supported corn futures to some extent," he added.