December 14, 2006

 

Thursday: China soybean futures settle up on light buying; corn flat

 

 

Soybean futures traded on the Dalian Commodity Exchange settled higher Thursday on light speculative buying, as Wednesday's losses were considered overdone, analysts said.

 

The benchmark May 2007 contract settled RMB15 higher at RMB2,851 a metric tonne, after trading between RMB2,835/tonne and RMB2,863/tonne.

 

Total trading volume rose to 93,112 lots from 70,410 lots Wednesday.

 

One lot is equivalent to 10 tonnes.

 

Wednesday's losses were excessive, said analysts, so the morning session kept the uptrend.

 

"We might see soybean to continue its consolidation, along with CBOT," said Zhang Yifan, a trader at China Grains & Oils Group Feed Corp.

 

Meanwhile, market talk that India, the largest soymeal exporter by volume in Asia, may turn a net importer of soybeans and soymeal in three to five years as domestic demand is rising, has also improved market sentiment, said a trader in Shanghai.

 

"The large amount of imports is one of the major reason why local soymeal prices are pressured," the trader said.

 

Soymeal and soyoil futures settled mostly higher, along with gains in soybean.

 

The benchmark May 2007 soymeal contract rose RMB18 to settle at RMB2,326/tonne, after trading between RMB2,309/tonne and RMB2,335/tonne.

 

The benchmark May 2007 soyoil contract settled RMB11 higher at RMB6,727/tonne.

 

Dalian corn futures settled almost unchanged, as market participants are seeking direction, given the already high prices, analysts said.

 

The most active September 2007 contract fell RMB4 to settle at RMB1,696/tonne, after trading between RMB1,689/tonne and RMB1,705/tonne.

 

Trading volume for all corn contracts fell to 972,390 lots from 1,064,926 lots Wednesday.

 

"We're looking at the spot market for clues on whether we need a correction or new highs," said the trader in Shanghai.