June 7, 2007

 

Thursday: China soybean futures settle down on CBOT loss, supply pressure

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mostly lower Thursday following the overnight losses at Chicago Board of Trade.

 

The benchmark January 2008 soybean contract settled RMB20 lower at RMB3,354 a metric tonne.

 

Total trading volume declined to 212,806 lots from 319,016 lots Wednesday. One lot is equivalent to 10 tonnes.

 

The arrival of imported soybeans also pushed prices lower, traders said, adding that the market will see more supply in the coming months.

 

Meanwhile, the weather in major domestic producing regions has been fine since the planting season, dampening investors'; enthusiasm, said Li Jun, a trader at Tonglian Futures.

 

The benchmark January contract may further fall to RMB3,300/tonne before it rises again, he said.

 

It traded between RMB3,343-RMB3,369/tonne Thursday.

 

Soymeal and soyoil futures settled mostly lower, along with soybean losses.

 

The benchmark September 2007 soymeal contract settled RMB37 lower at RMB2,537/tonne, while the benchmark September 2007 soyoil contract settled RMB62 lower at RMB7,888/tonne.

 

But the soyoil contracts may have more room to rise, as demand is still strong, traders said.

 

Most corn futures settled lower.

 

The benchmark September 2007 contract settled RMB3 lower at RMB1,663/tonne.

 

Trading volume for all corn contracts rose to 157,750 lots from 83,460 lots Wednesday.