March 22, 2007

Thursday: China soybean futures settle mixed; ample supply offsets CBOT

Soybean futures traded on the Dalian Commodity Exchange settled mixed Thursday as ample supply on the local market offset the positive impact from overnight gains on the Chicago Board of Trade.

China's soybean imports have been quite brisk the past weeks, with latest data showing February soybean imports up 5.3% on year at 1.18 million metric tonnes as traders have found current prices good enough for stocking up on soybean.

"There were no big price movements in today's trade," said a trader at a multinational trading firm, supporting analysts' views that the market may be consolidating at current levels.

The benchmark September contract settled RMB8 lower at RMB3,218/tonne.

Soymeal futures ended mostly lower, with the benchmark September contract down RMB9 at RMB2,659/tonne. Soy oil contracts settled mostly unchanged, although the benchmark September contract was down RMB28 at RMB6,528/tonne.

Corn futures ended lower, although a trader at a state-run grain trading firm said the fall didn't indicate any bearish trend in corn futures, and was a one-off price correction.

He added that corn cash prices continue to remain steady.

The benchmark September corn contract fell RMB5 to RMB1,690/tonne.