November 14, 2006
Tuesday: China soybean futures settle mostly lower on CBOT losses
Soybean futures traded on China's Dalian Commodity Exchange settled mostly lower Tuesday, pressured by an overnight fall in soybean futures on the Chicago Board of Trade, said analysts.
The most active May 2007 contract settled RMB5 lower at RMB2,838 a metric tonne, after trading between RMB2,826 and RMB2,850/tonne.
Total trading volume fell to 72,122 lots from 98,930 lots Monday. One lot is equivalent to 10 tonnes.
"(Soybean) futures fell today, mainly due to CBOT's falls," said Zhang Yifan, a trader at China Grains & Oils Group Feed Corp.
But "soybean futures are expected to rebound soon, finding support from rises in prices of imported soybeans and gains in corn futures," said Xu Wenjie, an analyst at Tianma Futures Co.
Soymeal futures settled down. The benchmark May 2007 soymeal contract fell RMB12 to settle at RMB2,435/tonne, after trading between RMB2,419 and RMB2,449/tonne.
Total trading volume fell to 174,568 lots from 196,134 lots Monday.
"Short selling and a lack of long buying led to today's losses in soymeal futures," Zhang said.
"Besides CBOT losses, investors were worried about a possible downward correction on CBOT, which may last for weeks, further pressuring soy futures," he added.
Soyoil futures settled higher. The most active May 2007 soyoil contract settled RMB57 higher at RMB6,306/tonne.
Corn futures settled mostly higher. The benchmark May 2007 contract settled RMB14 higher at RMB1,557/tonne, after trading between RMB1,548 and RMB1,567/tonne.
Total trading volume for corn fell to 1,335,934 lots from Monday's 1,491,998 lots.
"Despite the CBOT losses, gains in corn futures were extended to today, thanks to remarkable rises in prices in the spot market this week," Zhang said.
"Corn prices were quoted around RMB1,400-RMB1,700/tonne across China, up RMB100-RMB200 compared with a week earlier," he added.
"Market sentiment turned out to be mostly bullish, with long buying exceeding short selling," Xu said.
