December 21, 2006

 

Thursday: China soybean futures settle mostly higher on long buying

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mostly higher on long buying, analysts said.

 

The benchmark May 2007 contract settled RMB13 higher at RMB2,832 a metric tonne, after trading between RMB2,809/tonne and RMB2,845/tonne.

 

Total trading volume rose to 72,700 lots from 28,016 lots Wednesday. One lot is equivalent to 10 tonnes.

 

"Soybean futures prices opened lower this morning on overnight losses in soybean futures on Chicago Board of Trade, but climbed soon after, supported by technical buying," said Li Honglei, an analyst at Nanhua Futures Co.

 

"Investors remained pretty cautious, with a quiet news front before the holidays," said Kang Bing, an analyst at Jingyi Futures Co.

 

Soymeal futures settled higher. The benchmark May 2007 soymeal contract rose RMB15 to settle at RMB2,304/tonne, after trading between RMB2,280/tonne and RMB2,314/tonne.

 

Total trading volume rose to 156,994 lots from 55,602 lots Wednesday.

 

"Firm soybean prices, coupled with recent gains in prices of pork and poultry, provided some support to soymeal futures prices," Li.

 

Soyoil futures settled mostly higher. The benchmark May 2007 soyoil contract rose RMB30 to settle at RMB6,666/tonne.

 

Corn futures settled higher. The benchmark May 2007 contract settled up RMB9 at RMB1,626/tonne, after trading between RMB1,610-RMB1,639/tonne.

 

Total trading volume for corn rose to 1,072,612 lots from 652,176 lots Wednesday.

 

"Supplies of corn were tight on the spot market, with prices holding firm, offering strength to (corn) futures prices," Li said.