November 23, 2006
Thursday: China soybean futures settle mostly down on soy products
Soybean futures traded on the Dalian Commodity Exchange settled mostly lower Thursday, mainly due to losses in soymeal and soyoil futures, analysts said.
The benchmark May 2007 contract settled RMB3 lower at RMB2,916 a metric tonne, after trading between RMB2,899/tonne and RMB2,935/tonne.
Total trading volume fell to 180,970 lots from 271,816 lots Wednesday. One lot is equivalent to 10 tonnes.
"Losses in soy product futures weighed on soybean futures today," said Shi Junfeng, an analyst at Tianma Futures Co.
"Downward correction after gains in previous weeks continued today," said Zhang Yifan, a trader at China Grains & Oils Group Feed Corp.
Soymeal futures settled mostly lower. The benchmark May 2007 soymeal contract fell RMB19 to settle at RMB2,435/tonne, after trading between RMB2,424/tonne and RMB2,458/tonne.
Total trading volume fell to 184,378 lots from 235,814 lots Wednesday.
"Sluggish demand and overstocking led to falls in soymeal prices on the spot market lately, also pressuring soymeal futures," said Shi.
"Investors became increasingly cautious and started to liquidate positions," said Zhang.
Soyoil futures were mostly weaker, along with other soy futures. The benchmark May 2007 soyoil contract gave up RMB136 to settle at RMB6,643/tonne.
"Soyoil prices fell RMB100-RMB300 a tonne on the spot market across China today, weighing on (soyoil) futures prices," Shi said.
Corn futures settled mostly lower, also pressured by weaker soy futures. However, losses aren't expected to last for long because demand remains strong, analysts said.
"Losses in corn futures were relatively moderate, with fundamentals remaining good," said Shi.
The benchmark May 2007 contract settled RMB5 lower at RMB1,584/tonne, after trading between RMB1,578/tonne and RMB1,597/tonne.
Total trading volume for corn fell to 1,019,310 lots from 1,466,780 lots Wednesday.
"Demand from neighbouring countries, such as South Korea, remains strong, as prices of Chinese corn are still significantly lower than those on the international market," Zhang added.
