July 28, 2006

 

Friday: China soybean futures settle lower on CBOT, oversupply

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled lower Friday on oversupply and CBOT losses, an analyst said.

 

The benchmark September contract settled RMB37 lower at RMB2,370 a metric tonne, after trading between RMB2,354/tonne and RMB2,389/tonne.

 

Total trading volume rose to 71,432 lots from 32,536 lots Thursday. One lot is equivalent to 10 tonnes.

 

"Bearishness in soybean futures will continue due to persistent oversupply," said Dong Liang, an analyst at Shanghai Jiuheng Futures Co.

 

"Losses on CBOT pressured soybean futures prices as well," he added.

 

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 RMB2,437/tonne, down RMB2.

 

Soymeal futures also settled lower. The most active January 2007 soymeal contract fell RMB10 to settle at RMB2,277/tonne, after trading between RMB2,268/tonne and RMB2,289/tonne.

 

Total trading volume for all soymeal contracts rose to 279,456 lots from 236,148 lots Thursday.

 

"Demand for soymeal is still sluggish as the livestock-raising industry has not recovered on the whole," said Dong.

 

Soyoil futures settled mostly higher. The most active November 2006 soyoil contract rose RMB7 to settle at RMB5,411/tonne.

 

"Soyoil's fundamentals are good, more demand for soyoil is expected October and November," said Dong.

 

Corn futures settled higher. The most widely held May 2007 contract settled at RMB1,415/tonne, up RMB6.

 

"Corn futures losses in recent days were too large. We saw a small upward correction today," Dong added.

 

Total trading volume for corn fell to 248,064 lots from 266,194 lots Thursday.