January 4, 2007
Thursday: China soybean, corn futures settle sharply lower on CBOT
Soybean futures traded on the Dalian Commodity Exchange settled sharply lower Thursday on overnight losses in Chicago Board of Trade soybean futures and broad commodities weakness, analysts said.
The benchmark May 2007 contract fell RMB75 to settle at RMB2,829 a metric tonne, after trading between RMB2,808/tonne and RMB2,858/tonne.
Total trading volume rose to 153,458 lots from 98,114 lots Friday.
One lot is equivalent to 10 tonnes.
The exchange was closed Monday to Wednesday for the New Year holiday.
"The sharp losses in metals prompted profit-taking by longs amid the absence of fresh supportive news," said Gao Yanrong, an analyst at Dalu Futures Co.
He said market participants may choose to stay on the sidelines for a few sessions, waiting for cues from CBOT amid volatile commodities prices.
However, analysts said sharp losses aren't very likely given the still robust domestic spot market.
Soymeal and soyoil futures settled sharply lower, along with soybean futures.
The benchmark May 2007 soymeal contract fell RMB57 to settle at RMB2,335/tonne, after trading between RMB2,321/tonne and RMB2,360/tonne.
The benchmark May 2007 soyoil contract settled RMB221 lower at RMB6,591/tonne.
Dalian's corn futures settled sharply lower on long liquidation, tracking weak CBOT prices overnight.
The most active September 2007 contract fell RMB48 to settle at RMB1,677/tonne, after trading between RMB1,666/tonne and RMB1,687/tonne.
Trading volume for all corn contracts rose to 904,776 lots from 510,624 lots Friday.
"Local prices have been a bit stronger than CBOT on the rise of cash prices recently and the strong spot market may continue to lend support," said Zhang Yifan, a trader at China Grains & Oils Group Feed Corp.
However, weakness in charts and the possible impact of a broad commodities selloff may weigh on prices, and "we might have to wait until Monday to figure out the near-term trend," Zhang said.
