April 4, 2007

 

Wednesday: China soybean futures settle lower; corn little changed

 

 

Soybean futures traded on the Dalian Commodity Exchange settled lower Wednesday, pressured by overnight losses in Chicago Board of Trade soybean futures.

 

Benchmark September 2007 contract fell RMB11 to settle at RMB3,262 metric tonne, after trading between RMB3,250/tonne and RMB3,272/tonne.

 

Total trading volume fell to 247,026 lots from 360,332 lots Tuesday. One lot is equivalent to 10 tonnes.

 

"There might be more profit-taking in soybean in coming sessions, but the fundamental support - shrinking acreage - will lend support to prices in coming months," said Xu Yulan, an analyst with Yong'an Futures Co.

 

In two or three months, when feed makers need to stockpile, soybean prices may gain the momentum to rise, said Li Honglei, an analyst at Nanhua Futures Co.

 

The China National Grain and Oils Information Center Wednesday cut its forecast for 2007 soybean acreage by 200,000 hectares to 8.6 million hectares from March estimates, and estimated output to fall by 400,000 tonnes to 15 million tonnes.

 

Soymeal futures settle lower, along with soybeans. The benchmark September 2007 soymeal contract fell RMB12 to settle at RMB2,657/tonne.

 

Soyoil futures settled higher. The benchmark September 2007 soyoil contract settled RMB42 higher at RMB6,864/tonne.

 

Corn futures settled almost unchanged, amid continuous decline in open interest, and analysts said it will need to consolidate for a while before finding direction.

 

The benchmark September 2007 contract settled RMB2 higher at RMB1,669/tonne, after trading between RMB1,664/tonne and RMB1,673/tonne.

 

Trading volume for all contracts fell to 203,664 lots from 243,288 lots Tuesday.

 

"It may fall a bit further in coming sessions, but the downside is limited," given a stable cash market, said Xu.

 

Meanwhile, the CNGOIC raised its estimates for corn production in 2006 to 144.4 million tonnes, up 400,000 tonnes from its estimates in March.

 

It also raised its forecast for acreage and output in 2007 to 27.6 million hectares and 147 million tonnes, up from 27.4 million hectares and 146 million tonnes in March.