July 16, 2007

 

Monday: China soybean futures settle down on ample stocks; slow demand

 

 

Soybean futures traded on the Dalian Commodity Exchange settled lower Monday on ample stocks, shrugging off a fifth consecutive record high set at the Chicago Board of Trade Friday.

 

The benchmark January 2008 soybean contract settled RMB36 lower at RMB3,351 a metric tonne.

 

Total trading volume declined to 181,676 lots from 298,012 lots Friday. One lot is equivalent to 10 tonnes.

 

Ample stocks and sluggish demand from the feedmeal and industrial sector pressured soybean prices, said traders.

 

"Even if the CBOT sets new highs again, domestic soybean futures are unlikely to be supported much," said Li Honglei, a trader at Nanhua Futures Co.

 

He forecast soybean stocks at Chinese ports totaled 3 million to 4 million tonnes so far.

 

However, some analysts expect the prices of agricultural products, including soybean, to pick up later this year on a growing domestic economy.

 

Gu Jianjun, a trader at Jinyuan Futures, expects the benchmark January 2008 contract to rise to RMB4,100/tonne by the end of this year on strengthening CBOT prices.

 

Soymeal futures and soyoil futures settled mostly lower.

 

The benchmark January 2008 soymeal contract settled RMB31 lower at RMB2,671/tonne, while the benchmark September 2007 soyoil contract settled RMB102 lower at RMB8,026/tonne.

 

Corn futures settled lower, with the benchmark January 2008 contract ending RMB13 lower at RMB1,490/tonne.

 

Trading volume for all corn contracts rose to 331,670 lots from 330,098 lots Friday.