October 18, 2006

 

Wednesday: China soybean futures settle mostly lower on correction

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled mostly lower Wednesday on a downward correction, analysts said.

 

The benchmark January 2007 contract fell RMB3 to settle at RMB2,578 a metric tonne, after trading between RMB2,565 and RMB2,595/tonne.

 

Total trading volume fell to 30,304 lots from 44,190 lots Tuesday. One lot is equivalent to 10 tonnes.

 

"Today's losses were a downward correction for previous gains this week," said Zhang Yifan, a trader at China Grains & Oils Group Feed Corp.

 

"Soybean futures fell despite overnight gains on the Chicago Board of Trade, as investors were worried that the CBOT rises may find resistance at the current price level," said Kang Bing of Jingyi Futures Co.

 

Soymeal futures settled mostly higher, but the benchmark January 2007 soymeal contract fell RMB7 to settle at RMB2,280/tonne, after trading between RMB2,264 and RMB2,295/tonne.

 

Total trading volume rose to 273,050 lots from 263,522 lots Tuesday.

 

"Some profit-taking was seen today, pressuring soymeal futures. But the losses are not expected to last, with prices for imported soybeans expected to rise," Zhang said.

 

Soyoil futures settled mostly up. The most widely held January 2007 soyoil contract settled RMB43 higher at RMB5,648/tonne.

 

Corn futures settled lower. The benchmark May 2007 contract fell RMB15 to settle at RMB1,468/tonne, after trading between RMB1,458 and RMB1,481/tonne.

 

Total trading volume for corn rose to 470,354 lots from Tuesday's 453,482 lots.

 

"Harvest pressure was still weighing on corn futures. Spot prices dropped since early October in northern and central provinces with the new harvest coming to the market," Zhang added.