June 6, 2006

 

Tuesday: China soybean futures settle tad lower on CBOT; corn down

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled slightly lower Tuesday, in line with moderate losses in Chicago Board of Trade soybean futures overnight.

 

The benchmark September 2006 soybean contract settled RMB9 lower at RMB2,659 a metric tonne, after trading between RMB2,654/tonne and RMB2,668/tonne.

 

Trading volume for all soybean contracts fell to 19,494 lots from 57,096 lots Monday.

 

One lot equals to 10 tonnes.

 

The market saw some light speculative buying shortly before the closing bell, after trading in a narrow range for most of the session.

 

"Weather concerns about insufficient rains in northeastern planting areas are lending some support anyway, although it might still be too early to draw any conclusions about their impact on output," Li Honglei, an analyst with Nanhua Futures Co.

 

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 RMB18 to settle at RMB2,551/tonne.

 

Soymeal and soyoil futures settled mostly atad lower, in step with soybean futures.

 

The benchmark November 2006 soymeal contract fell RMB9 to settle at RMB2,373/tonne, after trading between RMB2,360/tonne and RMB2,388/tonne.

 

Total trading volume fell to 407,800 lots from 455,758 lots Monday.

 

The benchmark September 2006 soyoil contract settled RMB27 lower at RMB5,214/tonne.

 

"Investors became cautious in the session after strong gains yesterday, as the market still lacks much supportive news about feed demand growth," Li said.

 

Corn futures also settled mostly a tad lower. The benchmark March 2007 contract fell RMB16 to settle at RMB1,515/tonne, after trading between RMB1,510/tonne and RMB1,519/tonne.

 

Total trading volume for all corn contracts fell to 498,988 lots from 566,006 lots Monday.