December 26, 2006

 

Tuesday: China soybean futures settle higher on long buying

 

 

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

 

The benchmark May 2007 contract settled RMB21 higher at RMB2,897 a metric tonne, after trading between RMB2,885/tonne and RMB2,912/tonne.

 

Total trading volume fell moderately to 183,942 lots from 213,562 lots Monday.

 

One lot is equivalent to 10 tonnes.

 

"Prices of soybean futures rose today on speculative buying, with trading volume remaining high," said Gao Yanrong, an analyst at Dalu Futures Co.

 

"Market expectations that bullishness on the Chicago Board of Trade will last after the Christmas holidays also lent some help to soybean futures," he added.

 

Soymeal futures settled up, supported by spot prices, which have been on an uptrend lately, analysts said.

 

The benchmark May 2007 soymeal contract rose RMB24 to settle at RMB2,358/tonne, after trading between RMB2,339-RMB2,368/tonne.

 

Total trading volume rose to 179,802 lots from 171,884 lots Monday.

 

"After losses in previous weeks, soymeal prices found support at the current level on the spot market this week, thanks to small feed companies, which were pretty active in buying lately," Gao said.

 

Soyoil futures settled up. The benchmark May 2007 soyoil contract rose RMB81 to settle at RMB6,770/tonne.

 

Corn futures settled higher. The benchmark May 2007 contract settled RMB11 higher at RMB1,656/tonne, after trading between RMB1,648-RMB1,664/tonne.

 

Total trading volume for corn rose to 1,346,556 lots from 908,930 lots Monday.

 

"The market is still optimistic about long term demand for corn, as investors increasingly moved to forward contracts," Gao added.