September 2, 2003

China Soybean Futures Ended Mixed Amidst Thin Trading

China's Dalian Commodity Exchange soybean futures ended mixed Monday amidst inactive trading due the absence of major market-moving factors, according to traders.

News that newly harvested soybeans have begun trading at 2,250 - 2,350 yuan ($1=CNY8.28) a metric ton on the spot market had little impact on prices, as these spot levels indicate the settlement prices will be about CNY2,500/ton - around the current levels of existing soybean contracts.

"The prices (on the spot market) are in line with the market expectations, therefore having little impact on the market," said a trader at Dalu Futures in Shanghai.

Six of the nine soybean contracts traded in Dalian inched up 1-22 yuan a metric ton, while the remaining three fell CNY1-CNY25/ton.

The benchmark January 2004 contract fell CNY1/ton to CNY2,499/ton, after trading between CNY2,489/ton and CNY2,510/ton.

Dalian's soymeal futures again rose slightly on speculative buying by shorts, traders said.

The benchmark January 2004 contract added CNY20/ton to CNY2,135/ton, after trading between CNY2,115/ton and CNY2,147/ton.

Trade volume for Dalian soybean futures increased to 240,948 from 189,312 lots Friday. Open interest was 744,400 from 743,288 lots in the previous session.