September 14, 2007

 

Friday: China soybean futures settle down on pft-taking, may fall more

 

 

Soybean futures traded on the Dalian Commodity Exchange settled lower Friday on profit-taking following strong gains recently, and analysts expect a further downward correction next week.

 

The benchmark May 2008 soybean contract settled RMB32 lower at RMB4,034 a metric tonne, after trading between RMB4,017 and RMB4,069/tonne.

 

Total trading volume fell to 793,822 lots from 971,912 lots Thursday. One lot is equivalent to 10 tonnes.

 

"Given the strong gains this week, soybean futures needs a healthy correction, while the outlook remains very bullish," said Dong Liang, an analyst with Shanghai Jiuheng Futures Co.

 

"Lower output and lower quality this year are something certain," Dong said, pegging support for the benchmark at RMB3,950.

 

Soymeal futures settled mostly lower, weighed down by the losses in soybean futures, analysts said.

 

The benchmark May 2008 contract settled RMB22 lower at RMB3,096/tonne.

 

But soyoil futures settled mostly up a tad, as strong gains in crude oil futures overnight lent support to prices, said analysts.

 

The most active May 2008 contract settled RMB24 higher at RMB8,324/tonne.

 

Corn futures settled slightly lower. The benchmark May 2008 contract fell RMB13 to settle at RMB1,668/tonne.

Trading volume for all corn contracts fell to 347,952 lots from 620,100 lots Thursday.

 

China is unlikely to issue a new quota for corn exports this year due to concern over higher corn prices, Jiang Jianhua, Jiliang Grain Group Co.'s vice president, said Friday.

 

Analysts said given the central government's control over corn exports as well as expansion of processing capacity for industrial uses, corn prices may lack the momentum to rise much further by early next year.