September 20, 2006

 

Wednesday: China soybean futures settle down on lower import prices

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled lower Wednesday, pressured by falling prices of imported soybeans, analysts said.

 

The benchmark January 2007 contract settled RMB15 lower at RMB2,542 a metric ton, after trading between RMB2,537/ton and RMB2,546/ton.

 

Total trading volume rose to 13,292 lots from 8,988 lots Tuesday. One lot is equivalent to 10 tons.

 

"Prices for soybean imports fell by around RMB30/ton today, weighing on futures prices," said Li Honglei, an analyst at Nanhua Futures Co.

 

No. 2 soybean contracts, which are encouraged to be delivered with soybeans harvested from genetically modified crops, settled lower.

 

The benchmark January 2007 contract fell RMB8 to settle at RMB2,547/ton.

 

Soymeal futures settled lower. The benchmark January 2007 contract fell RMB16/ton to settle at RMB2,222/ton, after trading between RMB2,214/ton and RMB2,228/ton.

 

Total trading volume for soymeal fell to 76,600 lots from 87,798 lots Tuesday.

 

"Soymeal futures prices dropped today, mainly due to overnight losses on the Chicago Board of Trade," Li said.

 

Soyoil settled mostly lower, along with losses in other soy futures. The benchmark January 2007 contract fell RMB55 to settle at RMB5,567/ton.

 

"The Ministry of Commerce said Tuesday that soyoil imports witnessed a sharp increase in August and early September, pressuring futures prices," Li added.

 

Corn futures settled down. The benchmark May 2007 contract settled at RMB1,405/ton, down RMB9/ton.

 

Total trading volume for corn fell to 222,088 lots from 370,654 lots Tuesday.

 

"The new harvest is still expected to be good as the impact of droughts and early frosts that happened in producing regions lately is limited," said Li.