March 3, 2009
Tuesday: China soy futures down; downside supported at RMB3,300/tonne
China's soybean futures traded on the Dalian Commodity Exchange settled slightly lower Tuesday, tracking overnight soybean declines at the Chicago Board of Trade.
The benchmark September 2009 soybean contract declined 0.7% to settle at RMB3,372 a metric tonne.
Analysts said soybean prices will likely consolidate in coming sessions in the RMB3,300-RMB3,600/tonne trading range on chart-based cues.
Some profit-taking contributed to soybean's decline today, and analysts were concerned that CBOT soybeans' weak performance could further pressure Dalian soybeans in coming sessions.
"Without positive fundamental news from overseas, soybeans could still face some downward pressure," said Wang Xiaoguang, an analyst with Galaxy Futures.
Nevertheless, analysts said soybeans could find a support near RMB3,300/tonne as any lower would be an overcorrection.
Trading volume of all soybean contracts declined to 329,388 lots from 411,920 lots Monday.
Open interest increased by 4,068 lots to 347,642 lots Tuesday.
Corn settled higher, while soymeal, soyoil, and palm oil settled lower, tracking soybean's losses on the exchange.
Tuesday'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 3,372 Dn 25 317,318
Corn Sep 2009 1,676 Up 7 116,416
Soymeal Sep 2009 2,417 Dn 25 685,356
Palm Oil May 2009 5,052 Dn 84 33,980
Soyoil Sep 2009 5,890 Dn 74 247,480
