December 27, 2006

 

Wednesday: China soybean futures settle mostly lower on pft-taking

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mostly lower Wednesday, pressured by profit-taking, analysts said.

 

However, the benchmark May 2007 contract settled RMB4 higher at RMB2,901 a metric tonne, after trading between RMB2,890/tonne and RMB2,920/tonne.

 

Total trading volume fell to 160,330 lots from 183,942 lots Tuesday.

 

One lot is equivalent to 10 tonnes.

 

"Soybean futures opened higher this morning, supported by overnight rises in soybean futures on Chicago Board of Trade, but profit taking emerged soon after, which narrowed today's gains," said Kang Bing, an analyst at Jingyi Futures Co.

 

Soymeal futures settled mostly up. The benchmark May 2007 soymeal contract rose RMB3 to settle at RMB2,361/tonne, after trading between RMB2,352/tonne and RMB2,380/tonne.

 

Total trading volume fell to 152,244 lots from 179,802 lots Tuesday.

 

"Demand for soymeal saw a moderate recovery lately, as feed makers increased buying to take advantage of current low prices," Kang said.

 

"Short covering supported today's rises in soymeal futures prices, with investors liquidating positions," said Xu Wenjie, an analyst at Tianma Futures Co.

 

Soyoil futures settled mostly higher. The benchmark May 2007 soyoil contract rose RMB29 to settle at RMB6,799/tonne.

 

Corn futures settled mostly lower. The benchmark May 2007 contract settled down RMB22 at RMB1,634/tonne, after trading between RMB1,623/tonne and RMB1,654/tonne.

 

Total trading volume for corn fell to 1,204,030 lots from 1,346,556 lots Tuesday.

 

"With a quiet news front, corn futures lost pretty heavily today, also because of profit-taking. Market sentiment turned cautious, with longs seen liquidating positions," Xu said.