July 13, 2006
Thursday: China soybean futures settle lower on oversupply, CBOT
Soybean futures traded on China's Dalian Commodity Exchange settled mostly lower Thursday on an oversupply in the local market and overnight losses in Chicago Board of Trade soybean futures, said analysts.
The benchmark September contract fell RMB17 to settle at RMB2,512 a metric tonne, after trading between RMB2,500 and RMB2,523/tonne.
Total trading volume for all soybean contracts rose to 27,284 lots from 24,442 lots Wednesday. One lot is equivalent to 10 tonnes.
"Soybeans' fundamentals remain weak. The oversupply is still serious, while demand is sluggish," said Ding Haijiang, an analyst at Nanhua Futures Co.
No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops, settled mostly lower.
The benchmark September contract settled at RMB2,511/tonne, down RMB8.
Soymeal futures settled mostly lower on weak demand, analysts said.
The benchmark November 2006 soymeal contract fell RMB15 to settle at RMB2,311/tonne, after trading between RMB2,306 and RMB2,317/tonne.
Total trading volume for all soymeal contracts fell to 256,466 lots from 440,988 lots Wednesday.
"Although the feed industry is showing signs of a recovery, feed producers still can't get enough orders," Ding said.
Corn futures settled lower. The most widely held March 2007 contract settled at RMB1,426/tonne, down RMB6.
Total trading volume for all corn contracts fell to 320,150 lots from 427,916 lots Wednesday.
"Prices for corn futures, whose trading is pretty active, are expected to rise in the long run, as speculators put more capital in corn futures," Ding added.
Soyoil futures settled mixed. The most widely held September 2006 soyoil contract rose RMB2 to settle at RMB5,223/tonne.
Total trading volume for all soyoil contracts fell to 87,828 lots from 91,876 lots Wednesday.
"The trading volume for soyoil is relatively thin. The price changes may not reflect its fundamentals," Ding said.
