October 23, 2006

 

Monday: China soybean futures settled mostly lower on correction

 

 

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

 

The benchmark January 2007 contract fell RMB16 to settle at RMB2,570 a metric tonne, after trading between RMB2,559 and RMB2,581/tonne.

 

Total trading volume fell to 26,842 lots from 28,960 lots Friday. One lot is equivalent to 10 tonnes.

 

"Today's declines were a downward correction for gains last week," said Li Honglei, an analyst at Nanhua Futures Co.

 

"Losses on the Chicago Board of Trade Friday also weighed on futures," said Kang Bing, an analyst at Jingyi Futures Co.

 

Soymeal futures settled lower. The benchmark May 2007 soymeal contract fell RMB18 to settle at RMB2,360/tonne, after trading between RMB2,349 and RMB2,370/tonne.

 

Total trading volume fell to 115,134 lots from 139,552 lots Friday.

 

"Prices of soymeal in the spot market fell around RMB10-RMB20 a tonne last week, pressuring futures," said Kang.

 

Soyoil futures settled mixed. The most widely held January 2007 soyoil contract settled RMB10 lower at RMB5,766/tonne.

 

Corn futures settled lower. The benchmark May 2007 contract fell RMB3 to settle at RMB1,465/tonne, after trading between RMB1,460 and RMB1,470/tonne.

 

Total trading volume for corn rose to 232,006 lots from Friday's 226,550.

 

"More losses are expected this week, as corn futures will still find resistance at the current price level," Kang added.