December 20, 2006

Wednesday: China soybean futures settle higher tracking CBOT gains

Soybean futures traded on the Dalian Commodity Exchange settled mostly higher Wednesday, tracking similar gains in overnight Chicago Board of Trade soybean futures.

The benchmark May 2007 contract settled RMB11 higher at RMB2,819 a metric tonne, after trading between RMB2,816/tonne and RMB2,824/tonne.

Trading volumes were quite low at 28,016 lots compared with 53,948 lots Tuesday. One lot is equivalent to 10 tonnes.

In China's local markets, soybean supplies remain tight as farmers are reluctant to sell their stocks, anticipating higher prices.

Soymeal futures too settled higher, tracking gains in soybean futures, though traders said underlying fundamentals for soymeal remain weak in China due to low offtake from poultry and hog sectors.

The benchmark May 2007 soymeal contract rose RMB11 to settle at RMB2,289/tonne, after trading between RMB2,284/tonne and RMB2,296/tonne.

Soyoil futures settled mostly higher. The benchmark May 2007 soyoil contract settled up RMB41 at RMB6,636/tonne.

Corn futures settled mostly higher, with the benchmark May 2007 contract settling up RMB16 at RMB1,617/tonne.