September 19, 2008

 

Friday: China soybean futures settle down in line with CBOT fall
   

  

Soybean futures traded on the Dalian Commodity Exchange settled lower Friday, in line with an overnight fall on the Chicago Board of Trade.

 

The benchmark January 2009 soybean contract settled RMB37 lower at RMB3,830 a metric tonne after trading between RMB3,793 and RMB3,858/tonne.

 

As the global financial market situation hasn't improved significantly yet, the commodity market still faces risks ahead, said analysts.

 

Meanwhile, a favorable weather forecast for major U.S. soybean producing areas also pressured the market.

 

Late-week weather conditions over the central U.S. are generally favorable in the DTN Meteorlogix forecast. Dry weather for at least the next five days, along with mostly above-normal temperatures, will help fields recover from recent rains and help crops continue moving toward maturity.

 

Traders were retreating from the market ahead of the weekend due to the high risks, said Tianqi Futures in its note.

 

Corn futures settled higher, while soymeal and soyoil futures settled lower.

 

Soyoil cash buyers remained cautious as soyoil processing plants speeded up sales to cash in before a further drop, said Heilongjiang Jiusan Oil & Fat Co. in its note.

 

Vegetable oil demand is likely to remain weak in the near term, the note said.

 

Friday's settlement prices in yuan a metric tonne and the volume for all contracts in lots (One lot is equivalent to 10 tonnes):

 

Contract        Settlement        Price       Change       Volume

Soybean        Jan 2009          3,830       Dn  37      1,354,168

Corn            May 2009          1,773        Up  10         467,848

Soymeal       Jan 2009           3,316        Dn  14        989,244

Palm Oil        Jan 2009           5,906        Dn  66        162,450

Soyoil           Jan 2009           7,792        Dn  44        700,394