August 8, 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 in Chicago Board of Trade soybeans.

 

The benchmark September contract settled RMB18 lower at RMB2,390/tonne, after trading between RMB2,382/tonne and RMB2,398/tonne.

 

Total trading volume fell to 45,918 lots from 61,222 lots Monday. One lot is equivalent to 10 tonnes.

 

"Soybean futures prices fell today, following CBOT losses due to improved weather conditions," said Gao Yanrong, an analyst at Dalu 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 RMB2,468/tonne, up RMB9.

 

Soymeal futures settled lower. The most active January 2007 soymeal contract fell RMB33 to settle at RMB2,240/tonne, after trading between RMB2,235/tonne and RMB2,247/tonne.

 

Total trading volume for all soymeal contracts fell to 194,604 lots from 196,988 lots Monday.

 

"Local crushing companies enhanced production, in a rush to make profits from soyoil, the prices of which rose considerably recently. Soymeal output increased as a result, adding to the oversupply situation," Gao said.

 

Soyoil futures settled mostly lower. The benchmark November 2006 soyoil contract fell RMB18 to settle at RMB5,545/tonne.

 

"Soyoil futures prices held at a pretty high level after days of rises. A downward correction may be on the way," Gao added.

 

Corn futures settled lower. The most widely held May 2007 contract settled at RMB1,386/tonne, down RMB13.

 

"Corn prices dropped on the Dalian Commodity Exchange as did they on the spot market this week. Many investors thought corn futures would probably fall further, so as to reflect fundamentals," Gao said.

 

Total trading volume for corn rose to 321,268 lots from 304,520 lots Monday.