April 10, 2006
Monday: China soybean futures settle lower; corn down
Soybean futures on China's Dalian Commodity Exchange settled lower Monday in thin trade, as local investors were kept on the sidelines before the USDA's report Monday, analysts said.
The benchmark September 2006 soybean contract settled RMB25 lower at RMB2,587 a metric tonne, after trading between RMB2,577/tonne and RMB2,597/tonne.
"We're near the (benchmark) low of RMB2,554/tonne at the end of November, and local investors are waiting for CBOT responses after the USDA's report comes out Monday," said Lin Hui, an analyst with China International Futures Co. (Shanghai).
Trading volume for all soybean contracts fell to 47,920 lots from 74,228 lots Friday.
Total open interest fell 2,798 lots to 274,566 lots.
One lot equals 10 tonnes.
No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops, settled mostly lower.
The benchmark September contract fell RMB18 to settle at RMB2,477/tonne.
"Fewer and fewer people are interested in soybeans, given the bullish metals... Speculators rushed there to get quick money," Lin said.
Meanwhile, lower import prices - because of falling CBOT prices - have resulted in lower local soymeal and soyoil prices, which in turn puts pressure on futures prices, analysts said.
Crushing soybean get soymeal for producing animal feed and soyoil for making edible oils.
Soymeal and soyoil futures settled mostly lower, along with soybeans.
The benchmark September 2006 soymeal contract lost RMB23/tonne to settle at RMB2,188/tonne, after trading between RMB2,181/tonne and RMB2,196/tonne.
Total trading volume for soymeal futures fell to 185,334 lots from 302,756 lots Friday.
The benchmark September 2006 soyoil contract settled RMB38 lower at RMB5,003/tonne.
Corn futures settled lower on a spillover effect from soy futures, analysts said.
The most widely held September 2006 contract settled RMB7 lower RMB1,390/tonne, after trading between RMB1,384/tonne and RMB1,400/tonne.
