December 25, 2006

 

Monday: China Soybean Futures Settle Up On Long Buying

 

 

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

 

The benchmark May 2007 contract settled RMB36 higher at RMB2,876 a metric tonne, after trading between RMB2,844/tonne and RMB2,893/tonne.

 

Total trading volume jumped to 213,562 lots from 59,436 lots Friday. One lot is equivalent to 10 tonnes.

 

"Strong long buying interest was seen through today's sessions, supporting soybean futures. Sentiment was pretty positive, thanks to rises in soybean futures prices on Chicago Board of Trade Friday and firm spot prices," said Li Honglei, an analyst at Nanhua Futures Co.

 

"Investors expect CBOT gains to continue after the long Christmas holidays, which also contributed to today's gains in soy futures prices," he added.

 

Soymeal futures settled up. The benchmark May 2007 soymeal contract rose RMB26 to settle at RMB2,334/tonne, after trading between RMB2,315/tonne and RMB2,345/tonne.

 

Total trading volume rose to 171,884 lots from 132,802   lots Friday.

 

"Demand for soymeal may increase soon with livestcok farmers seen in a rush to increase production lately to take advantage of recent rises in the prices of pork and poultry. In addition, the soybean output is expected to fall worldwide next year, offering strength to soy futures," Li said.

 

Soyoil futures settled up. The benchmark May 2007 soyoil contract rose RMB6 to settle at RMB6,689/tonne.

 

Corn futures settled mostly higher. The benchmark May 2007 contract settled RMB2 higher at RMB1,645/tonne, after trading between RMB1,640/tonne and RMB1,652/tonne.

 

Total trading volume for corn fell to 908,930 lots from 1,631,050 lots Friday.

 

"With fundamentals largely unchanged, corn futures gained moderately today mainly on borrowed support from rises in soy futures," Li added.