November 1, 2006
Wednesday: China soybean futures settle mostly down on CBOT losses
Soybean futures traded on China's Dalian Commodity Exchange settled mostly lower Wednesday pressured by overnight losses on the Chicago Board of Trade, analysts said.
The most active May 2007 contract fell RMB21 to settle at RMB2,784 a metric tonne, after trading between RMB2,768/tonne and RMB2,792/tonne.
Total trading volume fell to 78,898 lots from 135,388 lots Tuesday.
One lot is equivalent to 10 tonnes.
"(Soybean) futures prices opened lower on CBOT losses today, but the losses were narrowed in the late session as sentiment among investors was pretty bullish, lending support to futures prices," said Zhang Yifan, a trader at China Grains & Oils Group Feed Co.
"Soybean futures are still in a process of catching up to earlier gains on CBOT in October," Zeng Xuezhou, an analyst at Beite Futures Co.
Soymeal futures settled lower. The benchmark May 2007 soymeal contract fell RMB22 to settle at RMB2,389/tonne, after trading between RMB2,377/tonne and RMB2,398/tonne.
Total trading volume fell to 169,222 lots from 346,124 lots Tuesday.
"Demand for soyoil grows at a faster pace than that for soymeal does, pressuring soymeal prices," Zhang said.
Soyoil futures settled mostly higher, The most active May 2007 soyoil contract settled RMB17 up at RMB6,120/tonne.
"Soyoil prices, quoted around RMB6,200/tonne-RMB6,500/tonne across the country this week, are even higher than futures prices, offering strength to futures," Zeng said.
Corn futures settled mostly lower. The benchmark May 2007 contract settled RMB7 lower at RMB1,471/tonne, after trading between RMB1,465/tonne and RMB1,475/tonne.
Total trading volume for corn fell to 267,574 lots from Tuesday's 503,812.
"In addition to weight of losses in corn futures on CBOT, harvest pressure is also surfacing," said Zeng.
However, "losses in corn futures are not expected to last for long as futures prices will probably find support if they fall RMB10-RMB20 a tonne further," added Zhang.
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