May 30, 2006

 

Tuesday: China soybean futures settle up on hopes of strong CBOT

 

 

China's soybean futures settled mostly higher on Tuesday, led largely by expectations of gains in CBOT soybean futures once trading resumes there on Tuesday after a long weekend.

 

There is expectation that soybeans may gain on CBOT this week as U.S. soybean acreage may fall, as well as continued biodiesel demand as crude prices remain high.

 

The benchmark September 2006 soybean contract settled RMB7 higher at RMB2,661 a metric tonne, after trading between RMB2,646/tonne and RMB2,670/tonne.

 

Trading volume for all soybean contracts rose to 31,706 lots from 11,308 lots on Monday.

 

One lot equals 10 tonnes.

 

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

 

The benchmark September contract settled RMB1 higher at RMB2,554/tonne.

 

However, a trader in Beijing said the fundamentals of China's soybean futures looked quite shaky, since the physical market has enough soybean stocks while demand has been rather tepid.

 

Soymeal futures settled mostly higher. The benchmark November 2006 contract rose RMB14 to settle at RMB2,342/tonne, after trading between RMB2,320/tonne and RMB2,354/tonne.

 

Total trading volume rose to 396,252 lots from 144,752 lots Friday.

 

Soyoil futures settled mostly higher. The benchmark September 2006 soyoil contract rose RMB6 to settle at RMB5,247/tonne.

 

Corn futures settled higher, with benchmark March 2007 contract settling RMB6 higher at RMB1,546/tonne.

 

Total trading volume for all corn contracts rose to 907,294 lots from 777,856 lots Friday.