July 21, 2006

 

Friday: China soybean futures settle lower on losses in metals

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled lower Friday, following losses in metals on the Shanghai Futures Exchange.

 

The benchmark September contract settled RMB14 lower at RMB2,461 a metric tonne, after trading between RMB2,450/tonne and RMB2,480/tonne.

 

Total trading volume rose to 43,688 lots from 12,810 lots Thursday. One lot is equivalent to 10 tonnes.

 

"Soybean futures prices registered a considerable fall, pressured by losses in metal futures such copper and aluminum," said Zeng Xuezhou, an analyst at Beite Futures Co.

 

No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops, settled lower.

 

The benchmark September contract settled at RMB2,486/tonne, down RMB13.

 

Soymeal futures settled mostly higher. The benchmark November 2006 soymeal contract fell RMB35 to settle at RMB2,242/tonne, after trading between RMB2,225/tonne and RMB2,274/tonne.

 

Total trading volume for all soymeal contracts rose to 347,540 lots from 128,478 lots Thursday.

 

"A retreat in soymeal futures prices will continue as long liquidation outpaces short-covering," said Zeng.

 

Soyoil futures settled higher. The most active September 2006 soyoil contract rose RMB34 to settle at RMB5,250/tonne.

 

"In addition to rising crude oil prices in recent days, which lent support to soyoil futures, soyoil's fundamentals remain good," Zeng added.

 

Corn futures settled lower. The most widely held March 2007 contract settled at RMB1,403/tonne, down RMB20.

 

"Corn futures will drop further, just as soymeal future will, as demand for both items isn't expect to pick up in the near future," Zeng said.

 

Total trading volume for corn rose to 531,208 lots from 232,922 lots Thursday.