April 18, 2007

 

Wednesday: China soybean futures settle down on CBOT fall, more supply

 

 

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

 

The benchmark September 2007 contract settled RMB51 lower at RMB3,064 a metric tonne.

 

Total trading volume rose to 310,154 lots from 175,010 lots Tuesday. One lot is equivalent to 10 tonnes.

 

CBOT soybean futures closed lower Tuesday, with nearby contracts piercing technical support at 100-day moving averages.

 

"Soybean prices have been staying at high levels, and they are just returning to their true value," said Dong Liang, a trader at Shanghai Jiuheng Futures Co.

 

A large volume of soybean imports and soybean sales before China's planting season in April and May, coinciding with the crop's harvest in South America, all contributed to lower prices, traders and analysts said.

 

Dong said the benchmark September contract will likely trade between RMB2,950/tonne and RMB3,150/tonne band in the remaining trading days in April, with immediate psychological support at RMB3,000/tonne.

 

Soymeal futures and soyoil futures settled lower.

 

The benchmark September 2007 soymeal contract fell RMB45 to settle at RMB2,459/tonne, while the benchmark September 2007 soyoil contract settled RMB188 lower at RMB6,896/tonne.

 

Soyoil futures prices have been rising a lot recently, and traders are now taking profits.

 

Corn futures also settled lower. The benchmark September 2007 contract settled RMB21 lower at RMB1,640/tonne.

 

Trading volume for all corn contracts rose to 795,572 lots from 360,684 lots Tuesday.