December 20, 2007

 

Thursday: China soybean futures settle mostly up a tad on CBOT gains

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mostly a tad up Thursday on short-covering, following gains on the Chicago Board of Trade soybean futures overnight.

 

The benchmark September 2008 soybean contract rose RMB4 to settle at RMB4,447 a metric tonne, after trading between RMB4,430/tonne and RMB4,462/tonne.

 

"Despite the downward correction earlier this week, I think the overall bullish sentiment on soybean is intact," said Dong Liang, an analyst at Jiuheng Futures.

 

"But prices will probably consolidate at the current level in the near-term," he said.

 

As overseas markets may remain relatively quiet during the Christmas and New year period, providing few cues to the domestic market, consolidation maybe the theme at least in the next week or so, analysts said.

 

Soymeal and soyoil futures settled mixed.

 

"Within a few weeks, poultry and pigs will be culled for the Chinese New Year, which means demand for feedmeals is slowing down," said Dong.

 

"This could pressure soymeal and corn prices in the next few weeks."

 

Corn futures settled almost unchanged.

 

Thursday's settlement prices in yuan per metric tonne, and volume for all contracts is in lots:

 

                Contract        Price      Change     Volume

Soybeans  Sep 2008      4,447      Dn  4        451,788

Soymeal    Sep 2008      3,303     Unch        1,135,012

Soyoil       May 2008      9,784      Up  62       105,318

Corn         May 2008      1,726      Up  1        255,898

Palm Oil    May 2008      8,752      Up  26        22,312