April 7, 2006

 

Friday: China soybean futures settle lower; corn mixed

 

 

Soybean futures on China's Dalian Commodity Exchange settled lower Friday, on expectation of further losses in Chicago Board of Trade soybean futures and more imports from U.S., analysts said.

 

The benchmark September 2006 soybean contract settled RMB21 lower at RMB2,612 a metric tonne, after stumbling to 4-month low at RMB2,602/tonne in the afternoon session.

 

Trading volume for all soybean contracts rose to 74,228 lots from 32,818 lots Thursday.

 

One lot equals 10 tonnes.

 

No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops, settled lower.

 

The benchmark September contract fell RMB29 to settle at RMB2,495/tonne.

 

"CBOT's gains Thursday were temporary, with nearby commodities lending some support," said Zeng Xuezhou, an analyst with Beite Futures Co.

 

"Our general judgment that losses (on CBOT) will extend in the short term remains unchanged, based on the fundamentals," he said.

 

News that China will buy 4.98 million metric tonnes of soybeans and 20,000 tonnes of soyoil from the U.S. in 2006, slightly pressured the over-supply market, analysts said.

 

"Few would believe the real demand can absorb so many soybeans," Zeng said.

 

Soymeal and soyoil futures settled mostly lower, along with soybeans.

 

The benchmark September 2006 soymeal contract settled RMB26 lower at RMB2,211/tonne, after hitting the lowest point since the end of November at RMB2,199/tonne.

 

Total trading volume for soymeal futures rose to 302,756 lots from 162,498 lots Thursday.

 

The benchmark September 2006 soyoil contract fell RMB53 to RMB5,041/tonne.

 

Corn futures settled mixed, pressured by soy futures, said analysts.

 

The most widely held September 2006 contract settled RMB4 lower RMB1,397/tonne.