April 6, 2006

 

Thursday: China soybean futures settle slightly up on CBOT; corn up

 

 

Most soybean futures on China's Dalian Commodity Exchange settled slightly higher Thursday, tracking moderate gains in overnight Chicago Board of Trade soybean futures, analysts said.

 

The benchmark September 2006 soybean contract settled RMB11 higher at RMB2,633 a metric tonne, after trading between RMB2,629/tonne and RMB2,637/tonne.

 

Trading volume for all soybean contracts shrank to 32,818 lots from 76,308 lots Wednesday.

 

One lot equals to 10 tonnes.

 

No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops, settled mostly lower.

 

The benchmark September contract rose RMB4 to settle at RMB2,524/tonne.

 

"Strong gains in nearby commodities lent only limited support to soybeans, as its fundamentals are too unfavorable," said Tang Yi, an analyst with Capital Futures.

 

The high arrivals in March, which some industry players forecast could rise further in April, weighed heavily on futures prices in the local market, Tang said. This was exacerbated by CBOT prices, which have been pressured by the March 31 USDA report.

 

Approximately 2.3 million tonnes of soybeans arrived in China in March.

 

Soymeal futures settled mixed in thin trading, with the benchmark September 2006 contract settling RMB10 higher at RMB2,237/tonne, after trading in a narrow range.

 

Total trading volume for soymeal futures fell to 162,498 lots from 230,970 lots Wednesday.

 

"Few (investors), at this point, dare to build long positions, as the outlook, both technical and fundamental, is basically negative," said Tang Yi.

 

Soyoil futures settled mostly mixed. The benchmark September 2006 contract rose RMB6 to RMB5,094/tonne.

 

Corn futures settled slightly higher, as players continue to roll over to forward contracts, analysts said.

 

The most widely held September 2006 contract settled RMB4 higher RMB1,401/tonne, after trading between RMB1,398/tonne and RMB1,405/tonne.

 

Trading volume for all contracts fell to 437,120 lots from 461,902 lots Wednesday.