June 26, 2006

 

Monday: China soybean futures settle lower tracking CBOT losses

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled lower Monday, largely tracking weakness in Chicago Board of Trade soybean futures Friday.

 

Dalian's September contract fell RMB18 from Friday to settle at RMB2,584/tonne.

 

Underlying fundamentals for China's soybean market are also quite weak at the moment, as high imports over the past few months have swelled soybean stocks.

 

Feed demand in June has also been more lackluster than May, resulting in a piling up of soybean stocks at crushing plants.

 

No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops, settled lower, in those contracts where trading took place.

 

The benchmark September contract settled RMB6 lower at RMB2,503/tonne.

 

No trading was done in July 2006, January 2007, March 2007 and May 2007 soybean No. 2 contracts.

 

Both soymeal and soyoil contracts settled lower.

 

The benchmark November 2006 soymeal contract settled RMB20 lower from Friday's close at RMB2,296/tonne.

 

The most widely held September 2006 soyoil contract settled RMB5 lower at RMB5,135/tonne.

 

Corn futures settled mixed, with the benchmark March 2007 contract RMB4 lower at RMB1,468/tonne.