October 22, 2007

 

Monday: China soybean futures settle down on falling crude oil prices

 

 

Soybean futures traded on the Dalian Commodity Exchange settled lower Monday on softer crude oil prices.

 

The benchmark May 2008 soybean contract settled RMB48 lower at RMB4,227 a metric tonne.

 

Total trading volume fell to 792,944 lots from 912,338 Friday.

 

One lot is equivalent to 10 tonnes.

 

A weaker crude oil price could mean that the U.S. dollar may stop falling, thus easing expectations of further inflation, said Wang Xiaoguang, an analyst at Galaxy Futures.

 

Inflation concerns and reduced soybean output this year have pushed soybean prices at Chicago Board of Trade and DCE to reach their respective record highs recently.

 

Lower crude oil prices will also help to curb any rise in soyoil prices, thus driving soybean prices lower, he added.

 

On Friday, private analytical firm Informa Economics estimated 2008-09 U.S. soybean planted acreage at 71.7 million acres, 13% higher from the 63.7 million acres planted this year.

 

In September, Informa estimated 2008-09 soybeans acreages at 68.9 million acres.

 

Analysts said improved soybean acreage also pressured the market.

 

Soymeal and soyoil futures settled mostly lower.

 

The benchmark May 2008 soymeal contract settled RMB62 lower at RMB3,219/tonne, and the benchmark May 2008 soyoil contract settled RMB118 lower at RMB8,616/tonne.

 

Corn futures also settled lower.

 

The benchmark May 2008 contract settled RMB16 lower at RMB1,643/tonne.

 

Total trading volume for all corn futures declined to 285,566 lots from 408,096 lots Friday.