May 25, 2006

 

Thursday: China soybean futures settle lower on CBOT, other markets

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled lower in thin trade Thursday, following overnight losses in Chicago Board of Trade soybean futures on sharp falls in crude oil and precious metals.

 

The benchmark September 2006 soybean contract settled RMB11 lower at RMB2,651 a metric tonne, after trading between RMB2,645/tonne and RMB2,661/tonne.

 

Trading volume for all soybean contracts fell to 31,332 lots from 36,414 lots Wednesday.

 

One lot equals to 10 tonnes.

 

No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops, settled mostly lower.

 

The benchmark September contract fell RMB23 to settle at RMB2,549/tonne.

 

Soybeans have been overshadowed by other commodities markets recently due to weak fundamentals, said analysts.

 

"If the uptrend of other commodities can create a firm inflationary environment for soybeans, hopefully we will see a consolidated (technical) bottom soon," said Beite Futures Co. analyst Zeng Xuezhou.

 

"But before that, many local investors choose to wait on the sidelines, given the volatility on the commodities market, which easily impacts soybeans," he said.

 

Soymeal and soyoil futures settled lower in line with soybeans.

 

The benchmark November 2006 soymeal contract fell RMB25 to settle at RMB2,319/tonne, after trading between RMB2,309/tonne and RMB2,329/tonne.

 

Total trading volume fell to 225,344 lots from 407,082 lots Wednesday.

 

The benchmark September 2006 soyoil contract settled RMB26 lower at RMB5,191/tonne.

 

Corn futures settled lower, after trading in a narrow range.

 

The benchmark March 2007 contract fell RMB6 to settle at RMB1,513/tonne.

 

Total trading volume for all corn contracts fell to 628,814 lots from 980,850 lots.