April 11, 2007

 

Wednesday: China soybean futures settle down on unfavorable USDA report

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mostly lower Wednesday on an unfavorable U.S. Department of Agriculture report released overnight.

 

The USDA estimated U.S. soybean ending stocks at a record 615 million bushels, up 20 million from its March estimate of 595 million and above the average analyst estimate of 586 million bushels.

 

The benchmark September 2007 contract settled RMB6 lower at RMB3,205 a metric tonne.

 

Total trading volume declined to 180,440 lots from 221,748 lots Tuesday. One lot is equivalent to 10 tonnes.

 

Meanwhile, weather forecasts for the U.S. Midwest are not conducive for a lot of planting progress, and as talk heats up on potential planting delays, the market is concerned that farmers may grow soybeans instead if they miss the planting season for corn.

 

The possibility of more soybean output puts pressure on the crop's prices, said Zeng Xuezhou, a trader at Beite Futures.

 

Soymeal futures settled lower but soyoil futures settled higher.

 

The benchmark September 2007 soymeal contract fell RMB10 to settle at RMB2,608/tonne, while the benchmark September 2007 soyoil contract settled RMB74 higher at RMB6,854/tonne.

 

Traders said the recent rise in palm oil futures helped support soyoil prices.

 

As palm oil is becoming more popular for energy consumption, other types of vegetable oil such as soyoil are needed as edible oil, said Liu Xinghua, a trader at Great Wall Futures Co.

 

Corn futures settled higher. The benchmark September 2007 contract settled RMB1 higher at RMB1,690/tonne.

 

Trading volume for all corn contracts fell to 272,076 lots from 448,956 lots Tuesday.