June 20, 2007

 

Wednesday: China soybean futures settle down on sharp fall on CBOT

 

 

Soybean futures traded on the Dalian Commodity Exchange settled lower Wednesday, following the sharp fall on the Chicago Board of Trade overnight.

 

The benchmark January 2008 soybean contract settled RMB45 lower at RMB3,273 a metric tonne.

 

Total trading volume declined to 179,372 lots from 188,962 lots Tuesday. One lot is equivalent to 10 tonnes.

 

Soybean futures traded on CBOT ended sharply lower Tuesday on speculative selling amid the extraction of risk premium following improved moisture chances for the eastern Midwest.

 

Prices of Chinese soybean contracts have been sluggish for the past few weeks, pressured by ample imports and concerns of inflation.

 

Traders said the yuan's gradual appreciation has also slowed purchasing activity as buyers hold back in anticipation of lower import costs.

 

"The purchase of soybeans is more rational than before," said a local trader.

 

Soymeal futures and soyoil futures also settled lower.

 

The benchmark September 2007 soymeal contract settled RMB37 lower at RMB2,494/tonne, while the benchmark September 2007 soyoil contract settled down RMB98 at RMB7,606/tonne.

 

Corn futures settled lower.

 

The benchmark September 2007 contract settled RMB16 lower at RMB1,578/tonne.

 

Trading volume for all corn contracts declined to 498,558 lots from 571,296 lots Tuesday.