China soybean: APM-6 stable ahead of holiday as China snaps up two cargoes
AgriCensus APM-6 China premium was assessed at 110 cents per bushel over March futures, equating to $378/mt, unchanged from Tuesday.
AgriCensus assessed the APM-6 taking into account the best offer at 115 cents per bushel over for February shipment, and one trade done at 110 cents per bushel for February shipment on Tuesday.
Two other deals were also reported on Wednesday with one done on CFR basis at 104 cents per bushel for Feb/March shipment and the other agreed on FOB terms at 52 cents per bushel over May futures for May shipment.
No firm bids were heard today.
Both CBOT soybean futures and China’s Dalian soymeal futures traded sideways on Wednesday by 5pm Beijing time, as the market awaits the outcome of trade talk between Chinese and US delegates to be carried out in the next two days.
As the Chinese New Year holiday is starting later this week and many traders are departing for home on Friday, funds have closed out more positions today on Dalian Commodity Exchange.
The size of open positions for the most liquid May contract was down more than 17,000 lots on Wednesday to a total of 1.8 million lots, down 8% from a peak of nearly 1.96 million lots two weeks ago – an overall down trend.
“Funds will take profits tonight (Beijing time) and are trimming their positions,” one China-based analyst at an international crusher told AgriCensus.
“Eyes are back on China-US trade talks,” he added.
Dalian will not have its night trading session this Friday as the Chinese New Year holiday kicks off.
“Everyone is adjusting positions ahead of the holiday,” one Chinese soymeal trader said.
