April 20, 2009

China's soybean futures traded on the Dalian Commodity Exchange settled lower Monday as profit-taking kicked in following gains in the last trading session, in line with overnight losses on the Chicago Board of Trade.

 

The benchmark January 2010 soybean contract settled 1.5% lower at RMB3,492 a metric tonne.

 

Analysts said soybean futures will likely consolidate in the near term on technical cues as fresh fundamental news is lacking.

 

"We expect soybean contracts to hover around RMB3,500/tonne in the coming sessions with more participants exiting their positions to book profits," said Gao Yanrong, an analyst with Dalu Futures Co.

 

With Argentina's soybean production declining lately, soybean prices in China are tracking U.S. soybean prices more closely as Chinese importers source a higher percentage of soybeans from the U.S.

 

Soymeal and corn contracts declined on the exchange, taking price cues from soybean contracts, analysts said. Palm oil and soyoil contracts settled higher, in line with crude palm oil gains at the Bursa Malaysia Derivatives.

 

Trading volume of all soybean contracts increased to 263,684 lots from 195,126 lots Friday.

 

Open interest rose by 23,502 lots to 338,856 lots Monday.

               

Monday's settlement prices for benchmark contracts in yuan a metric tonne and volume for all contracts in lots (One lot is equivalent to 10 tonnes):

            

Contract         Settlement        Price        Change      Volume

Soybean         Jan 2010          3,492        Dn   54      176,054

Corn              Sep 2009          1,667        Dn   18      205,564

Soymeal         Sep 2009          2,886        Dn   70   1,014,770

Palm Oil          Sep 2009          6,494        Up   48      544,282

Soyoil             Sep 2009          7,142        Up   22      971,436