July 14, 2006
Friday: China soybean futures settle mostly lower on CBOT losses
Soybean futures traded on China's Dalian Commodity Exchange settled mostly lower Friday in step with overnight losses in U.S. soybean futures, said an analyst.
The benchmark September contract fell RMB26 to settle at RMB2,486 a metric tonne, after trading between RMB2,477 and RMB2,494/tonne.
Total trading volume for all soybean contracts rose to 59,288 lots from 27,284 lots Thursday. One lot is equivalent to 10 tonnes.
"The (Chicago Board of Trade) losses were weighing on the soybean futures prices. Another reason is that speculators liquidated their positions as the delivery months are approaching," said Liu Xinghua, an analyst at Great Wall Futures Co.
No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops, settled mixed.
The benchmark September contract settled at RMB2,506/tonne, down RMB5.
Soymeal futures also settled lower. The benchmark November 2006 soymeal contract fell RMB9 to settle at RMB2,302/tonne, after trading between RMB2,296 and RMB2,331/tonne.
Total trading volume for all soymeal contracts fell to 210,586 lots from 256,466 lots Thursday.
"Soymeal futures prices are unlikely to fall too much further as most of the soymeal producers, struggling to break even, are reluctant to lower the prices by a large margin," Liu said.
Soyoil futures settled mostly higher. The most active September 2006 soyoil contract rose RMB17 to settle at RMB5,240/tonne.
Following the latest surge in crude oil prices, soyoil futures were boosted by the growing expectation that soyoil could be used as a biofuel, Liu added.
Corn futures settled mostly lower. The most widely held March 2007 contract settled at RMB1,419/tonne, down RMB7.
"Some warehouses sold out stocks to make space for the new harvest, which increased the supply and pressured prices," Liu said.
Total trading volume for corn contracts rose to 343,186 lots from 320,150 lots Thursday.
