June 27, 2007

 

Wednesday: China soybean futures settle mixed; likely near bottom

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mixed Wednesday, and the market may near the bottom after a recent fall.

 

The benchmark January 2008 soybean contract settled RMB12 lower at RMB3,205 a metric tonne, after trading between RMB3,187/tonne and RMB3,226/tonne.

 

Total trading volume rose to 260,212 lots from 226,668 lots Tuesday. One lot is equivalent to 10 tonnes.

 

"The domestic market is likely going stable, with the benchmark January 2008 contract supported at RMB3,150/tonne," said Gao Yanrong, a trader at Dalu Futures.

 

Soybean imports will be reduced in July and August, the traditional low season for consumption, and weather conditions may be helpful for the recovery of soybean contracts during that period, said traders.

 

A drought in northeast China since the start of June has affected the growth of more than half of the agricultural products planted in the major corn and soybean growing areas.

 

The drought is the harshest on record and will likely continue in the near term.

 

Soymeal futures and soyoil futures settled mostly lower.

 

The most heavily traded January 2008 soymeal contract settled RMB1 lower at RMB2,543/tonne, while the benchmark September 2007 soyoil contract settled RMB48 lower at RMB7,540/tonne.

 

Traders expect soyoil contracts to consolidate at current high levels.

 

Corn futures settled lower.

 

The benchmark January 2008 contract settled RMB19 lower at RMB1,565/tonne.

 

Trading volume for all corn contracts rose to 691,684 lots from 637,686 lots Tuesday.