November 13, 2008
Soybean futures traded on the Dalian Commodity Exchange settled down for third consecutive session Wednesday, pressured by overnight losses in Chicago Board of Trade soybean futures.
The benchmark May 2009 soybean contract settled RMB62 lower at RMB3,202 a metric tonne, after trading between RMB3,181/tonne and RMB3,228/tonne.
There wasn't any fresh news about soy, and the market just followed the declines on the CBOT last night, said an analyst in Beijing with an international trading house.
"Looking at the fundamentals, soybean has further downside, but now that we have state purchase plan, the outlook for the price becomes a bit murky," he said.
Soymeal and soyoil futures settled lower, along with soybeans.
Corn futures also settled lower, with the benchmark contract down 1.4%.
"Technically, corn is now in a downward trajectory, but if there is follow-up supportive news about exports, the downside might be limited," said an analyst at a futures brokerage in Zhejiang province.
A statement posted on the government's Web site late Wednesday said a meeting of China's State Council has approved the elimination of export duties on grains, but it didn't say what products would be affected and when the changes would take effect.
Analysts speculate that the crop most likely to be affected is corn, as exports fell by 95.5% on year in the January-to-October period to around 210,000 tonnes, and domestic prices have come under pressure from ample supply and weak demand.
The State Council has asked that steady growth be maintained in exports next year, and the National Development and Reform Commission, along with other relevant departments, is studying production this year and demand next year to decide the details, NDRC Vice Chairman Zhang Xiaoqiang said Thursday.
Thursday's settlement prices in yuan a metric tonne and volume for all contracts in lots:
Contract settlement Price Change Volume
Soybeans May 2009 3,202 Dn 62 898,698
Corn May 2009 1,582 Dn 22 328,728
Soymeal Jan 2009 2,525 Dn 15 832,642
Palm Oil Jan 2009 4,418 Dn 218 56,694
Soyoil Jan 2009 6,240 Dn 246 390,896