March 12, 2007

Monday: China soybean futures settle mixed; weak soy products prices

Soybean futures traded on the Dalian Commodity Exchange settled mixed Monday, with gains in Chicago Board of Trade soybean futures offsetting the impact of weak domestic soymeal and soyoil prices.

The benchmark September 2007 contract settled RMB3 lower at RMB3,205 a metric tonne, with total trading volume at 89,408 lots. One lot equals 10 tonnes.

On China's cash market, soybean prices rose in the week to Friday, but further gains are very unlikely as both soyoil and soymeal prices remain soft.

Soy oil supply on local markets remain high as China's soybean imports are quite brisk, with weekly purchases of six to nine cargoes.

The weak cash prices of soymeal and soyoil weighed on futures prices of both these commodities on the Dalian exchange, with most soy oil futures contracts remaining unchanged while most soymeal futures contracts settled lower. Benchmark contracts for both commodities settled lower.

The benchmark September 2007 soyoil contract settled RMB12 lower at RMB6,474/tonne, while the benchmark September 2007 soymeal contract settled RMB4 lower at RMB2,681/tonne.

Corn futures on the Dalian exchange settled lower on similar losses in CBOT corn futures Friday.

The most active September 2007 contract settled RMB5 lower at RMB1,684/tonne.