January 31, 2007

 

Wednesday: China soybean futures up on CBOT; corn supported by crude rise

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled mostly higher Wednesday, supported by the overnight rise on the Chicago Board of Trade.

 

The most active September 2007 contract settled up RMB38 at RMB3,102 a metric tonne.

 

Total trading volume increased to 178,298 lots versus 52,976 lots Tuesday. One lot equals 10 tonnes.

 

Speculative and fund buying carried CBOT soybean futures to a higher close Tuesday, with underlying support seen from bullishness over demand and possible dryness in South America.

 

"Bargain-hunting also supported the prices amid expectations that soybean prices will be strong in the long run," said Liu Xinghua, a trader at Great Wall Futures Co.

 

Any fall in soybean prices could be limited by international funds' buying interest in agricultural products on CBOT, he added.

 

Soyoil futures settled mostly higher and soymeal futures settled up.

 

The benchmark May 2007 soyoil contract settled RMB68 higher at RMB6,468/tonne. The most active September soymeal contract settled up RMB20 at RMB2,574/tonne.

 

Corn futures also settled higher, with the benchmark September contract up RMB9 at RMB1,709/tonne.

 

Trading volume for corn contracts totaled 452,784 lots compared with 677,246 lots Tuesday.

 

The rebound in crude oil prices supported corn and soyoil, which can be used to make alternative fuels, analysts said. Higher crude oil prices are considered favorable for edible oils as they may make alternative fuel more attractive.