August 29, 2006

 

Tuesday: China soybean futures settle lower as import prices fall

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled lower Tuesday as prices of imported soybeans fell.

 

The most active January 2007 contract settled RMB12 lower at RMB2,524 a metric tonne, after trading between RMB2,518/tonne and RMB2,532/tonne.

 

Total trading volume rose to 20,982 lots from 11,956 lots Monday. One lot is equivalent to 10 tonnes.

 

"Prices of imported soybeans dropped by an average of RMB50 last week, weighing on soybean futures," said Li Honglei, an analyst at Nanhua Futures Co.

 

Gao Yanrong, an analyst at Dalu Futures Co, said overnight losses on the Chicago Board of Trade also weighed on soybean futures.

 

"CBOT losses continued today due to favorable weather conditions, pressuring soybean futures," Gao said.

 

No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops, settled flat. The benchmark September contract was at RMB2,479/tonne.

 

Soymeal futures settled lower. The benchmark January 2007 contract fell RMB15 to settle at RMB2,227/tonne, after trading between RMB2,222/tonne and RMB2,235/tonne.

 

Total trading volume for soymeal rose to 110,662 lots from 102,622 lots Monday.

 

"Soymeal futures are very responsive to CBOT performances as most crushing companies use imported soybeans to make soymeal," Li said.

 

Soyoil settled lower. The most widely held November 2006 contract fell RMB17 to settle at RMB5,464/tonne.

 

Corn futures were mostly lower. The benchmark May 2007 contract settled RMB8 lower at RMB1,404/tonne.

 

Total trading volume for corn jumped to 772,978 lots from 199,778 lots Monday.

 

"Corn future ended lower on long liquidation and short selling, following corn's retreat on the CBOT," said Gao.

 

"Corn futures prices may bottom out in this week, after days of losses," Li added.