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Source: Reuters

China to expand soyoil, soymeal futures trading limits, margin

Published: 22 Nov 2010 01:59:15 PST

BEIJING, Nov 22 - Daily trading limits for soyoil and soymeal futures on the Dalian Commodity Exchange will be expanded from Tuesday's settlement, the bourse said on Monday.

The upper and lower limits for the contracts would be expanded to 5 percent from 4 percent, while the trading margin would be lifted to 7 percent from 5 percent, the exchange said in a statement published on its website.

The move, aimed at preventing speculation and big fluctuations in futures prices, was likely to have little impact on the prices, which have been falling since earlier this month on concern over China's monetary tightening measures following surges in agricultural commodities prices, said analysts.

"Agricultural futures prices are likely to go higher later amid the overflow of U.S. dollars, while Beijing's policies have been moderate (in tightening liquidity)," said Dongwu Futures analyst Wang Ping.

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