April 30, 2007

 

Monday: China soybean futures settle lower ahead of long holiday

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mostly lower Monday, with market participants concerned over possible big moves on the Chicago Board of Trade during China's long holiday.

 

However, the benchmark September 2007 contract settled RMB3 higher at RMB3,118 a metric tonne.

 

Total trading volume declined to 75,970 lots from 121,646 lots Friday. One lot equals 10 tonnes.

 

"(The fall) shows market (participants) have quite widely different opinions toward the future development of the (soybean futures) market," and prefer to sell ahead of the long holiday, said Xu Wenjie, a trader at Tianma Futures Co.

 

Chinese markets will be closed May 1-7 for the Labor Day holiday.

 

Soymeal and soyoil futures settled mostly higher.

 

The benchmark September 2007 soymeal contract rose RMB11 to settle at RMB2,535/tonne, while the benchmark September 2007 soyoil contract settled RMB28 higher at RMB6,916/tonne.

 

Soyoil prices were underpinned by recent gains in crude oil prices and strong consumption, said traders.

 

Higher crude oil prices are considered favorable for edible oils as that may make biodiesel more attractive. Soyoil can be used to produce biodiesel, a substitute for crude oil.

 

Corn futures settled lower. The benchmark September 2007 contract settled RMB2 lower at RMB1,653/tonne.

 

Trading volume for all corn contracts fell to 214,224 lots from 259,060 lots Friday.