April 27, 2007

 

Friday: China soybean futures settle down; traders cash in before break

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mostly lower Friday, as traders prefer to cash in ahead of the week-long Labor Day holiday starting Tuesday.

 

The benchmark September 2007 contract settled RMB6 lower at RMB3,115 a metric tonne.

 

Total trading volume declined to 121,646 lots from 160,530 lots Thursday. One lot is equivalent to 10 tonnes.

 

"It's a normal correction of earlier gains, and there is concern about price fluctuation on the Chicago Board of Trade during the long holiday," said Dong Liang, a trader at Shanghai Jiuheng Futures Co.

 

China's markets will be closed from May 1 through May 7 for the holiday.

 

Soymeal futures and soyoil futures also settled mostly lower.

 

The benchmark September 2007 soymeal contract settled unchanged at RMB2,524/tonne, while the benchmark September 2007 soyoil contract settled RMB66 lower at RMB6,888/tonne.

 

With the ongoing harvest of rapeseed, more supply of rapeoil is seen after the May holiday, putting pressure on soyoil prices, said traders.

 

Corn futures settled lower. The benchmark September 2007 contract settled RMB6 lower at RMB1,655/tonne.

 

Trading volume for all corn contracts fell to 259,060 lots from 410,738 lots Thursday.