October 26, 2006

 

Thursday: China soybean futures settle mostly lower on CBOT

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled mostly lower Thursday, pressured by overnight losses on the Chicago Board of Trade, analysts said.

 

The benchmark January 2007 contract fell RMB8 to settle at RMB2,572 a metric tonne, after trading between RMB2,562 and RMB2,576/tonne.

 

Total trading volume fell to 22,966 lots from 37,664 lots Wednesday. One lot is equivalent to 10 tonnes.

 

"Yesterday's losses (on Dalian) extended to today on CBOT's losses," said Zhang Yifan, a trader at China Grains & Oils Group Feed Corp.

 

Soymeal futures settled down. The benchmark May 2007 soymeal contract fell RMB17 to settle at RMB2,369/tonne, after trading between RMB2,362 and RMB2,376/tonne.

 

Total trading volume fell to 115,038 lots from 215,898 lots Wednesday.

 

"In addition to pressure from losses in soy futures on CBOT, import arrivals of soybeans that are stockpiled at major ports are still around 2 million to 3 million tonnes, further weighing on soymeal futures," said Tian Lianfeng, an analyst at Tianma Futures Co..

 

"Investors were cautious and liquidated positions," he added.

 

Soymeal is mainly made of imported soybeans in China

 

Soyoil futures settled mostly higher. The most widely held January 2007 soyoil contract settled RMB9 higher at RMB5,859/tonne.

 

Corn futures settled lower. The benchmark May 2007 contract settled RMB12 lower at RMB1,464/tonne, after trading between RMB1,460 and RMB1,469/tonne.

 

Total trading volume for corn fell to 241,846 lots from Wednesday's 498,860 lots.

 

"There are market rumors that China has halted corn exports in order to ensure domestic grain supplies, pressuring corn futures," Tian said.

 

Chinese grain companies have signed contracts over the past two months to export over 3 million tonnes of corn, according to local media reports.