October 31, 2006

 

Tuesday: China soybean futures settled mostly down on profit taking

 

 

Soybean futures traded on China's Dalian Commodity Exchange settled mostly lower on profit taking Tuesday, analysts said.

 

The most active May 2007 contract fell RMB18 to settle at RMB2,805 a metric tonne, after trading between RMB2,780/tonne and RMB2,832/tonne.

 

Total trading volume fell to 135,388 lots from 195,678 lots Tuesday.

 

One lot is equivalent to 10 tonnes.

 

"(Soybean) futures prices dropped on long selling for profit taking today," said Liu Xinghua, an analyst at Great Wall Futures Co.

 

"Newly harvested soybeans will appear in the market on a large scale in November, weighing on soybean futures," said Zhang Yifan, a trader at China Grains & Oils Group Feed Co.

 

Soymeal futures settled down. The benchmark May 2007 soymeal contract fell RMB18 to settle at RMB2,411/tonne, after trading between RMB2,388/tonne and RMB2,441/tonne.

 

Total trading volume fell to 346,124 lots from 394,454 lots Monday.

 

"Soymeal futures prices fell today in a downside correction for previous gains," Liu said.

 

"Losses in metal futures today also pressured soy futures," he added.

 

Soyoil futures settled mostly lower, along with other soy futures. The most active May 2007 soyoil contract settled RMB84 lower at RMB6,103/tonne.

 

Corn futures settled lower. The benchmark May 2007 contract settled RMB1 lower at RMB1,478/tonne, after trading between RMB1,471/tonne and RMB1,490/tonne.

 

Total trading volume for corn rose to 503,812 lots from Monday's 410,822.

 

"Corn futures prices, finding resistance at the current price level, will probably remain largely stable with small fluctuations in the near future," Zhang added.