November 24, 2006

 

Friday: China soybean futures settle mostly down; long lquidation

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mostly lower Friday on long liquidation, analysts said.

 

The benchmark May 2007 contract settled RMB14 lower at RMB2,902 a metric tonne, after trading between RMB2,882/tonne and RMB2,919tonnene.

 

Total trading volume rose slightly to 188,966 lots from 180,970 lots Thursday. One lot is equivalent to 10 tonnes.

 

"(Soybean) futures prices fell early today, pressured by long liquidation. Losses narrowed in the late session on short covering," said Kang Bing, an analyst at Jingyi Futures Co.

 

"Strong spot prices supported (soybean) futures," said Zhang Yifan, a trader at China Grains & Oils Group Feed Corp.

 

This week, soybean prices were quoted around RMB2,520-RMB2,620 a tonne on the spot market in major soybean producing regions, up RMB150-RMB180 from last week.

 

Soymeal futures settled mostly down. The benchmark May 2007 soymeal contract fell RMB10 to settle at RMB2,425/tonne, after trading between RMB2,415/tonne and RMB2,435/tonne.

 

Total trading volume fell to 140,270 lots from 184,378 lots Thursday.

 

"Soymeal prices fell a tad on the spot market in southern provinces lately, due to overstocking and sluggish demand, pressuring (soymeal) futures," Zhang added.

 

Soyoil futures were mostly higher, but the benchmark May 2007 soyoil contract dropped RMB8 to settle at RMB6,635/tonne.

 

Corn futures settled higher, finding support from recent rises in prices on the spot market, analysts said.

 

The benchmark May 2007 contract settled RMB2 higher at RMB1,586/tonne, after trading between RMB1,581/tonne and RMB1,592/tonne.

 

Total trading volume for corn fell to 768,322 lots from 1,019,310 lots Thursday.

 

"Delays in the ongoing harvesting due to warm weather in major corn producing regions contributed to a shortage in supplies, supporting corn prices," Zhang said.

 

However, "today's trading volume was thin as investors were cautious, as they are waiting to see if corn prices will fall when the new harvest enters the market on a large scale next month," he added.