January 22, 2007

 

Monday: China soybean futures down on higher latam output outlook

 

 

Soybean futures traded on the Dalian Commodity Exchange settled lower Monday amid expectations of higher output in South America due to good weather.

 

The most active September 2007 contract lost RMB13 to settle at RMB3,053 a metric tonne.

 

Total trading volume fell to 58,026 lots versus 107,780 lots Friday.

 

One lot is equivalent to 10 tonnes.

 

The weather in South America has been good recently, providing better conditions for soybean growth, said Gao Yanrong, an analyst at Dalu Futures Co. in Shanghai.

 

Soybean futures in after-hours trading were also lower despite the higher closer on the Chicago Board of Trade Friday.

 

At 0851 GMT, the benchmark March soybean futures contract was at $7.13 a bushel, down from the floor close of $7.17 3/4 a bushel.

 

But good demand is likely to limit the decline in soybean futures prices, keep them at comparatively high levels, said Gao.

 

Soymeal futures settled lower while soyoil futures settled mixed.

 

The most active September 2007 soymeal contract fell RMB15 to settle at RMB2,562/tonne.

 

The benchmark May 2007 soyoil contract rose RMB6 to RMB6,614/tonne.

 

Corn contracts settled lower as farmers cashed in ahead of the Spring Festival, which falls on Feb. 18 this year, said analysts.

 

The benchmark September 2007 corn contract fell RMB16 to settle at RMB1,715/tonne.

 

Trading volume for all corn contracts totaled 643,300 lots compared with 922,542 lots Friday.

 

But corn prices are likely to pick up after the holiday due to continued demand, analysts said.