August 30, 2018 / 8:31 AM / 23 days ago

UPDATE 1-China's Dalian Commodity Exchange to cut delivery months for soybean futures contract

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BEIJING, Aug 30 (Reuters) - China’s Dalian Commodity Exchange said on Thursday it will reduce the number of delivery dates for its soybean futures contract to six from nine and will shorten the forward curve to one year from 18 months.

Currently investors in the No. 1 soybean contracts can trade futures spanning a range of delivery dates from September to as far out as January 2020.

It will not list futures for delivery in March 2020 until March next year, it said.

It did not give a reason for the move and the exchange did not answers calls for a comment.

Concentrating trading into a shorter period of time may be aimed at boosting liquidity in the contract, said He Yuxin, an analyst with Zhuochuang, a commodities consultancy based in Shandong.

The market open interest for the soybean contracts, a measure of liquidity that totals all of the outstanding contracts held by traders, was about 150,000 lots on Thursday. That is much lower than the 1.5 million lots in soymeal futures , one of the exchange’s most active products. (Reporting by Josephine Mason and Hallie Gu; Editing by Christian Schmollinger)

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