March 27, 2007

 

Tuesday: China soybean futures settle down on CBOT, sufficient supply

 

 

Soybean futures traded on the Dalian Commodity Exchange settled lower Tuesday, tracking overnight losses on the Chicago Board of Trade.

 

The benchmark September 2007 contract settled RMB22 lower at RMB3,191 a metric tonne.

 

Total trading volume rose to 104,330 lots from 74,316 lots Monday. One lot is equivalent to 10 tonnes.

 

CBOT soybean futures stumbled Monday, succumbing to technically-inspired speculative long-liquidation pressure.

 

Sufficient domestic supply also put pressure on soybean prices, said Zhang Yifan, a trader at China Grains & Oils Group Feed Corp.

 

Analysts expect soybean cash prices to decline a bit in the short term, as farmers are willing to sell ahead of the planting season in April and May.

 

Soymeal futures and soyoil futures also settled lower.

 

The benchmark September 2007 soymeal contract fell RMB11 to settle at RMB2,631/tonne, while the benchmark September 2007 soyoil contract settled RMB32 lower at RMB6,570/tonne.

 

Corn futures settled lower with the benchmark September 2007 contract down RMB4 at RMB1,678/tonne.