March 16, 2007

 

Friday: China soybean futures settle down on CBOT, low import prices

 

  

Soybean futures traded on the Dalian Commodity Exchange settled lower Friday, following overnight declines on the Chicago Board of Trade.

 

Market participants said domestic traders are waiting for more signs to guide their trade as the trend on CBOT is not clear yet.

 

The benchmark September 2007 contract fell RMB16 to settle at RMB3,191 a metric tonne.

 

Total trading volume rose to 123,980 lots from 84,342 lots Thursday. One lot is equivalent to 10 tonnes.

 

"Lower import prices also pushed domestic prices down," said a Beijing-based trader, who put the support level for the benchmark contract at RMB3,060/tonne.

 

Traders expect domestic soybean futures to fall further in the near term.

 

Soymeal and soyoil futures settled lower, along with soybean futures.

 

The benchmark September 2007 soymeal contract fell RMB26 to settle at RMB2,644/tonne. The benchmark September 2007 soyoil contract settled RMB34 lower at RMB6,496/tonne.

 

Corn futures settled mostly lower. The benchmark September 2007 contract settled RMB5 lower at RMB1,690/tonne.

 

Trading volume for all contracts fell to 249,646 lots from 257,764 lots Thursday.

 

Traders said corn futures and soymeal futures are under pressure as the livestock breeding sector is yet to recover.

 

Corn and soymeal can be used as animal feed.