February 9, 2006
Thursday: China soybean futures settle mixed; corn up on CBOT gains
Soybean futures on China's Dalian Commodity Exchange settled mixed Thursday, awaiting direction from the monthly USDA crop report due later Thursday, traders said.
The benchmark May 2006 soybean contract settled RMB3 higher at RMB2,644 a metric tonne after trading between RMB2,635/tonne and RMB2,658/tonne.
The total trading volume for soybean futures on the Dalian exchange shrank to 128,706 lots from 342,928 lots Wednesday. One lot is equivalent to 10 tonnes.
"A lack of fresh local news, the upcoming USDA report, which can be negative, and reports of new bird flu outbreak and human infection pressured the local market," said Dong Liang, an analyst with Shanghai Jiuheng Futures Co.
Soybean futures opened higher on short buying, but ended lower on long liquidation in the afternoon session.
Consumption is usually lowest in the month after the Chinese New Year, and given the over-supply situation at home and abroad, investors are waiting on the sidelines, seeking market direction, analysts said.
Most soymeal futures settled slightly lower, with the benchmark May 2006 soymeal contract settling down RMB2 at RMB2,285/tonne.
The total trading volume for soymeal futures fell along with soybean futures to 320,748 lots from 375,990 lots Wednesday.
Soyoil futures settled mixed. The benchmark September 2006 soyoil contract fell RMB5 to settle at RMB5,071/tonne.
Dalian's No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops, settled mostly lower.
The benchmark September 2006 No. 2 soybean contract settled RMB3 lower at RMB2,576/tonne, after trading between RMB2,567/tonne and RMB2,598/tonne.
Meanwhile, corn futures settled higher on long buying, tracking overnight gains on the Chicago Board of Trade.
The benchmark September 2006 contract rose RMB16 to settle at RMB1,481/tonne, after trading between RMB1,469/tonne and RMB1,495/tonne.
