July 18, 2006

 

Tuesday: China soybean futures settle lower on CBOT losses

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled lower Tuesday, in step with overnight losses on the Chicago Board of Trade, analysts said.

 

The benchmark September contract fell RMB13 to settle at RMB2,470 a metric tonne, after trading between RMB2,465 and RMB2,479/tonne.

 

Total trading volume for all soybean contracts rose to 27,144 lots from 26,280 lots Monday. One lot is equivalent to 10 tonnes.

 

"Soybean futures prices dropped following the fall on the CBOT," said Shi Junfeng, an analyst at Tianma 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 RMB2,501/tonne, down RMB6.

 

Soymeal futures also settled lower. The benchmark November 2006 soymeal contract fell RMB16 to settle at RMB2,276/tonne, after trading between RMB2,270 and RMB2,284/tonne.

 

Total trading volume for all soymeal contracts fell to 210,536 lots from 218,106 lots Friday.

 

"Soymeal futures prices fell, in line with soybean futures," said Zeng Xuezhou, an analyst at Beite Futures Co.

 

"Many speculators have stepped away from soymeal futures and have started to put capital in soyoil futures," he added.

 

Soyoil futures settled mostly lower. The most active September 2006 soyoil contract fell RMB8 to settle at RMB5,234/tonne.

 

"Soyoil will not fall too much as its fundamentals are better, compared with soybean and soymeal," Zeng said.

 

"Moreover, the rising crude oil price will lend support to soyoil futures," he added.

 

Corn futures settled mostly lower. The most widely held March 2007 contract settled at RMB1,425tonne, down RMB1.

 

"The losses in soymeal futures are weighing on corn futures prices as both of the items are raw materials for animal feed," Zeng said.

 

Total trading volume for corn contracts rose to 364,110 lots from 443,124 lots Monday.