May 15, 2007

 

Tuesday: China soybean futures settle down; correction after recent rise

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mostly lower Tuesday, subject to a correction after their recent surge.

 

The benchmark September 2007 contract settled RMB2 lower at RMB3,209 a metric tonne.

 

Total trading volume declined to 203,314 lots from 217,298 lots Monday. One lot is equivalent to 10 tonnes.

 

"It was an appropriate correction after the recent surge, and the overall tendency is upward for this year," due to the U.S. Department of Agriculture report, said Dong Liang, a trader at Shanghai Jiuheng Futures Co.

 

Domestic soybean futures settled sharply higher Monday on a favorable 2007-08 stock estimate from the USDA.

 

New-crop ending stocks were pegged at 320 million bushels, below the average analyst estimate of 337 million and the USDA's latest old-crop estimate of 610 million, according to the report.

 

Meanwhile, China's General Administration of Customs issued preliminary trade data Tuesday showing demand for soybeans is strong.

 

China imported 2.65 million tonnes of soybeans in April, up 3.1% from 2.57 million tonnes a year earlier.

 

The country also imported 210,000 tonnes of soyoil in April and exported 580,000 tonnes of corn during the same period, the data showed.

 

Soymeal contracts settled mostly lower, and soyoil futures settled mixed.

 

The benchmark September 2007 soymeal contract fell RMB11 to settle at RMB2,576/tonne, while the benchmark September 2007 soyoil contract settled RMB26 lower at RMB7,222/tonne.

 

Corn futures settled mostly higher. The benchmark September 2007 contract settled RMB5 lower at RMB1,679/tonne.

 

Trading volume for all corn contracts fell to 303,374 lots from 475,040 lots Monday.