September 3, 2003
China Soybean Futures Edge Up, Soymeal Ends Higher
China's Dalian Commodity Exchange soybean futures mostly inched higher Wednesday, although trading was still listless, with players sidelined due to a lack of major market-moving news.
"Many players were sidelined as there was no substantial change in fundamentals," said a trader at Holly Futures in Nanjing.
Players are holding back from active trading as the newly harvested soybeans are expected to hit the market late this month and early next month.
It isn't clear yet whether new crop can meet market demand, the Holly Futures trader said.
Seven of the nine soybean contracts traded in Dalian inched up 1-6 yuan a metric ton, while one fell CNY7/ton and one was flat.
The benchmark January 2004 contract edged up CNY3/ton to settle at CNY2,494/ton, after trading between CNY2,485/ton and CNY2,498/ton.
Dalian's soymeal futures posted gains, which the Holly Futures trader attributed to increasing demand for non-staple foodstuffs ahead of the traditional Chinese Mid-autumn Festival, as farmers need soymeal to feed hogs.
The benchmark January 2004 contract added CNY3/ton to CNY2,139/ton, after trading between CNY2,127/ton and CNY2,149/ton.
Trade volume for Dalian soybean futures decreased to 143,694 from 320,108 lots Tuesday. Open interest was 753,916, from 749,040 lots in the previous session.
One lot is equivalent to ten tons.