Futures News
- Commodities futures trading volume rises
Date: 11-Jan-2007 Sources: (Shenzhen Daily)
THE domestic commodities futures trading volume in 2006 rose 39 percent from the previous year to 449.47 million lots, according to data released by the China Futures Association.
The total turnover on the Dalian Commodities Exchange, where soybean, soymeal, soyoil and corn futures are traded, rose 21 percent to 240.70 million lots, which accounted for 54 percent of the country's total trading volume.
Corn futures were the most actively traded product last year, with total volume trebling to 135.29 million lots.
One lot is equivalent to 10 metric tons.
Market players said the forecast that China is expected to become an importer of corn soon, which significantly drove prices higher, attracted speculators.
Trading volume on the Shanghai Futures Exchange, where copper, aluminum, natural rubber and fuel oil futures are traded, rose 72 percent to 116.21 million lots, which was 26 percent of the three exchanges' total turnover last year.
Natural rubber futures were the most actively traded product on the exchange, totaling 52.09 million lots, nearly triple from 2005, followed by aluminum at 27.86 million lots, more than six times 2005 levels.
One lot equals five tons on the exchange, except for fuel oil futures, for which one lot equals 10 tons.
The volatile and high copper prices last year kept risk-averse investors on the sidelines, while natural rubber and aluminum became good alternatives for investors, said market participants.
On the Zhengzhou Commodity Exchange, trading volume for cotton, white sugar, wheat and purified terephthalic acid, or PTA, futures, rose 63 percent to 92.56 million lots.
Wheat and cotton have become less attractive due to their low liquidity.
Analysts said total trading volume on the exchange would have fallen without the launch of white sugar and PTA futures.
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