December 13, 2005

 

Tuesday: China soybean futures settle slightly up on CBOT gains

 

 

Soybean futures on China's Dalian Commodity Exchange settled higher for a third consecutive trading day Tuesday, in line with an overnight rise in Chicago Board of Trade soybeans.

 

The benchmark May 2006 soybean contract rose RMB13 to settle at RMB2,643 a metric tonne, after trading between RMB2,626 and RMB2,659/tonne.

 

Total trading volume for soybean futures on the Dalian exchange decreased to 381,586 lots from 502,782 lots Monday. One lot is equivalent to 10 tonnes.

 

The benchmark soybean contract opened higher in the local market after CBOT soybeans rallied overnight, but the morning's gains were eroded as long position holders took profits and short selling emerged.

 

However, active short covering and some bargain-hunting later in the trading day sent the benchmark upward again.

 

Buying momentum moderated after active speculative buying drove the market sharply higher Monday, analysts said.

 

"There hasn't been any bad news, like bird flu outbreaks, in recent days, but neither has there been any good news," said a Beijing-based analyst. "As a result, the rebound is unsustainable and more consolidation (around recent levels) is likely."

 

Dalian's No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops but are seldom traded, settled higher.

 

The most heavily traded No. 2 September 2006 soybean contract settled RMB6 higher at RMB2,612/tonne, after trading between RMB2,596 and RMB2,628/tonne.

 

Soymeal futures traded on the exchange settled higher, mostly on some fresh speculative buying.

 

The benchmark May 2006 soymeal contract gained RMB14 to settle at RMB2,268/tonne, after trading between RMB2,242 and RMB2,294/tonne.

 

Corn futures traded on the exchange settled slightly lower, with the most widely held September 2006 contract falling RMB2 to settle at RMB1,330/tonne, after trading between RMB1,324 and RMB1,336/tonne.