June 27, 2006

 

Tuesday: China soybean futures settle down in thin trade; CBOT weighs

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled lower Tuesday, pressured by sharp falls in Chicago Board of Trade soybean futures overnight.

 

The benchmark September contract fell RMB19 to settle at RMB2,565 a metric tonne, after trading between RMB2,555/tonne and RMB2,577/tonne.

 

Total trading volume fell to 16,276 lots from 23,942 lots. One lot is equivalent to 10 tonnes.

 

Meantime, despite lower opening prices, "corn's relatively stronger performance had some spillover effect on soy futures," said Lin Hui, an analyst with Shanghai International Futures Co.

 

But there isn't much supportive news for soy futures, given favorable U.S. crop conditions, she said.

 

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 RMB8 to settle at RMB2,495/tonne.

 

Both soymeal and soyoil contracts settled weaker.

 

The benchmark November 2006 soymeal contract settled RMB16 lower at RMB2,280/tonne, after trading between RMB2,266/tonne and RMB2,293/tonne.

 

Total trading volume for all soymeal contracts rose slightly to 256,860 lots from 249,280 lots.

 

The most widely held September 2006 soyoil contract settled RMB10 lower at RMB5,125/tonne.

 

Corn futures settled slightly down, despite short-covering in late trading that drove prices up a bit.

 

Strong cash values for corn continue to underpin futures prices, analysts said.

 

The benchmark March 2007 contract settled RMB1 lower at RMB1,467/tonne.

 

Total trading volume shrank to 298,182 lots from 299,448 lots Monday.