December 28, 2006
Thursday: China soybean futures settle mostly up on soymeal gains
Soybean futures traded on the Dalian Commodity Exchange settled mostly higher Thursday, supported by stronger soymeal futures, analysts said.
However, the benchmark May 2007 contract settled RMB1 lower at RMB2,900 a metric tonne, after trading between RMB2,878/tonne and RMB2,914/tonne.
Total trading volume rose to 196,256 lots from 160,330 lots Wednesday.
One lot is equivalent to 10 tonnes.
"Soybean futures prices opened lower this morning, pressured by overnight falls in soybean futures on the Chicago Board of Trade, but it rose soon after, along with gains in soymeal futures," said Zhang Yifan, a trader at China Grains & Oils Group Feed Corp.
Soymeal futures settled up. The benchmark May 2007 soymeal contract rose RMB17 to settle at RMB2,378/tonne, after trading between RMB2,349/tonne and RMB2,396/tonne.
Total trading volume rose sharply to 264,442 lots from 152,244 lots Wednesday.
"Strong fresh buying supported today's rises in soymeal futures prices, with investors building up positions," said Li Honglei, an analyst at Nanhua Futures Co.
"A recent recovery in prices of pork and poultry, coupled with declines in stocks of imported soybeans at major ports witnessed lately, offered strength to soymeal futures," he added.
Soyoil futures settled mostly down. The benchmark May 2007 soyoil contract fell RMB3 to settle at RMB6,796/tonne.
Corn futures settled mixed. The benchmark May 2007 contract settled RMB2 higher at RMB1,636/tonne, after trading between RMB1,628/tonne and RMB1,642/tonne.
Total trading volume for corn fell to 577,372 lots from 1,204,030 lots Wednesday.
"In the absence of supportive factors, recent gains in corn futures were relatively weaker, compared with gains in soy futures," Zhang said.
Furthermore, "tight supplies showed a trend of easing lately, as farmers and traders increased selling, after corn prices remained largely stable for weeks," Li added.
