June 19, 2007

 

Tuesday: China soybean futures settle down on supply pressure

 

 

Soybean futures traded on the Dalian Commodity Exchange settled lower Tuesday on ample supply.

 

The benchmark January 2008 soybean contract settled RMB26 lower at RMB3,318 a metric tonne.

 

Total trading volume declined to 188,962 lots from 261,662 lots Monday. One lot is equivalent to 10 tonnes.

 

Factors including growing soybean imports and concerns of inflation pressure prevented domestic soybean contracts from rising, although contracts on the Chicago Board of Trade set a new record high overnight.

 

However, high import prices will likely present chances for soybean futures to rise later this year, traders said.

 

"If the CBOT doesn't correct its recent surge by a large extent, domestic soybeans may catch up with CBOT gains," said Liu Xinghua, a trader at Great Wall Futures Co.

 

Soymeal futures and soyoil futures settled mostly lower.

 

However, the benchmark September 2007 soymeal contract settled RMB1 higher at RMB2,531/tonne, while the benchmark September 2007 soyoil contract settled RMB78 lower at RMB7,704/tonne.

 

Corn futures settled lower.

 

Benchmark September 2007 contract settled RMB20 lower at RMB1,594/tonne, after trading between RMB1,582-RMB1,608/tonne during the session.

 

Zhang Yifan, a trader at China Grains & Oils Group Feed Corp., sees technical rebound at the important support of RMB1,580/tonne for the September contract, before it continues to fall further.

 

Trading volume for all corn contracts declined to 571,296 lots from 627,870 lots Monday.