March 6, 2009

China's soybean futures traded on the Dalian Commodity Exchange settled slightly lower Friday, consolidating off Thursday's gains amid a lack of direction from outside.

 

The benchmark September 2009 soybean contract declined 0.3% to settle at RMB3,433 a metric tonne.

 

Soybean prices could continue to consolidate in the coming sessions as the market lacks direction, and "players are now eyeing macroeconomic news for further cues," says Wang Xiaoguan, an analyst with Galaxy Futures.

 

Wang put nearby support at RMB3,300/tonne and tipped nearby resistance at RMB3,600/tonne on chart-based cues.

 

Looking ahead, soybean prices will continue to be supported by China's nine-day annual parliamentary meeting as investors hold on to hopes that government's stimulus measures would help the country through the downturn.

 

In addition, the government's ongoing 40-million-tonne purchase could help the crop find a base in the near term, helping to offset any spillover from weakness in its Chicago Board of Trade counterpart, analysts said.

 

Trading volume of all soybean contracts declined to 233,540 lots from 260,528 lots Thursday.

 

Open interest fell 3,380 lots to 328,820 lots Friday.

 

All other agricultural products settled lower, in line with soybean's losses on the exchange.

 

Friday'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         3,433         Dn   10       223,894

Corn               Sep 2009         1,685          Dn    4         42,424

Soymeal          Sep 2009         2,472         Dn   13       689,560

Palm Oil           May 2009         5,124         Dn   24        12,424

Soyoil              Sep 2009         5,994         Dn   46       260,320