November 10, 2006

 

Friday: China soybean futures settle down on CBOT losses

 

 

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

 

The most active May 2007 contract settled RMB16 lower at RMB2,826 a metric tonne, after trading between RMB2,820/tonne and RMB2,833/tonne.

 

Total trading volume fell to 43,482 lots from 103,766 lots Thursday.

 

One lot is equivalent to 10 tonnes.

 

"(Soybean) futures fell today, following the downward correction on CBOT," said Zhang Yifan, a trader at China Grains & Oils Group Feed Corp.

 

"Supplies are still relatively strong with the new harvest entering the market, pressuring futures prices," said Liu Xinghua, an analyst at Great Wall Futures Co.

 

Soymeal futures settled down, along with soybean futures. The benchmark May 2007 soymeal contract fell RMB21 to settle at RMB2,435/tonne, after trading between RMB2,426/tonne and RMB2,443/tonne.

 

Total trading volume fell to 128,280 lots from 236,898 lots Thursday.

 

"Soymeal futures fell today on CBOT losses. However, investors were still positive as trading volume dropped as well, showing selling pressure wasn't strong," said Zhang.

 

Soyoil futures settled higher, with the most active May 2007 soyoil contract up RMB6 at RMB6,255/tonne.

 

Corn futures settled lower. The benchmark May 2007 contract settled RMB9 lower at RMB1,511/tonne, after trading between RMB1,503/tonne and RMB1,517/tonne.

 

Total trading volume for corn fell to 569,898 lots from 748,396 lots Thursday.

 

"Corn futures opened lower, pressured by CBOT falls, but climbed a tad in the later session on long buying," said Zhang.

 

"Corn prices held firm on the spot market nationwide this week, with noticeable rises in southern provinces, which offered some strength to futures," Liu added.