May 9, 2007

 

Wednesday: China soybean futures settle higher, waiting for USDA report

 

 

Soybean futures traded on the Dalian Commodity Exchange settled higher Wednesday, with traders expecting a coming supply and demand report from the U.S. Department of Agriculture to help boost market sentiment.

 

The benchmark September 2007 contract settled RMB28 higher at RMB3,142 a metric tonne.

 

Total trading volume rose to 151,338 lots from 65,208 lots Tuesday. One lot is equivalent to 10 tonnes.

 

Friday, the USDA will release its May supply/demand report, which will include ending stocks estimates for the 2006-07 U.S. soybean crop and the 2007-08 crop.

 

A Dow Jones Newswires survey of 15 analysts showed the average estimate for old crop ending stocks is 607 million bushels. The average estimate for new crop ending stocks is 337 million bushels, according to the survey.

 

"A decline in stocks is always good news for the market," said Li Panfeng, an analyst at Beite Futures Co.

 

He added the market also expects the USDA to cut its soybean output forecast for Brazil, the major source of soybeans for China before the harvest season in China and North America, which may extend from September to October.

 

Soymeal and soyoil contracts also ended mostly higher.

 

The benchmark September 2007 soymeal contract rose RMB20 to settle at RMB2,552/tonne, while the benchmark September 2007 soyoil contract settled RMB78 higher at RMB6,970/tonne.

 

Corn futures settled higher. The benchmark September 2007 contract settled RMB11 higher at RMB1,673/tonne.

 

Trading volume for all corn contracts rose to 367,164 lots from 213,954 lots Tuesday.