February 18, 2009

Soybean futures traded on China's Dalian Commodity Exchange settled sharply lower Wednesday, along with widespread losses in other markets.

 

The benchmark September 2009 soybean contract settled down RMB131, or 3.8%, at RMB3,343 a metric tonne.

 

Sharp declines in various markets from crude oil to equities and from the U.S. to China have triggered panic selling, said analysts.

 

Concern that the economic outlook is continuing to deteriorate despite the U.S. government's stimulus plans is casting doubt on the sustainability of earlier rallies.

 

"The rebound in commodities after the tumble late last year may be over, and soybeans are likely to test another bottom again," said Wang Xiaoguang, an analyst with Galaxy Futures.

 

Trading volume of all soybean contracts rose to 527,754 lots from 390,948 lots Tuesday.

 

Open interest rose 20,656 lots to 360,798 lots Wednesday.

 

Corn futures, soymeal futures, soyoil futures and palm oil futures all settled sharply lower.

 

Wednesday's settlement prices in yuan a metric tonne for benchmark contracts and volume for all contracts in lots (one lot is equivalent to 10 tonnes):

 

Contract          Settlement         Price        Change      Volume

Soybean          Sep 2009          3,343        Dn  131     527,754

Corn                Sep 2009         1,668         Dn   27     202,540

Soymeal          May 2009          2,562        Dn  120     525,228

Palm Oil           May 2009          5,166        Dn  270      10,254

Soyoil              May 2009          6,070        Dn  314      86,500