November 28, 2006

 

Tuesday: China soybean futures settle mostly down after recent gains

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mostly lower Tuesday on a downward correction, analysts said.

 

The benchmark May 2007 contract settled RMB17 lower at RMB2,947 a metric tonne, after trading between RMB2,937/tonne and RMB2,960/tonne.

 

Total trading volume dropped to 117,458 lots from 210,814 lots Monday. One lot is equivalent to 10 tonnes.

 

"Long liquidation contributed to the falls in (soybean) futures today, which was a downward correction after yesterday's gains," said Zeng Xuezhou, an analyst at Beite Futures Co.

 

"Market sentiment was cautious, with investors liquidating positions," said Gao Yanrong, an analyst at Dalu Futures Co.

 

Soymeal futures settled lower. The benchmark May 2007 soymeal contract fell RMB20 to settle at RMB2,440/tonne, after trading between RMB2,428/tonne and RMB2,455/tonne.

 

Total trading volume fell to 125,236 lots from 200,986 lots Monday.

 

"Soymeal futures prices fell on a downward correction as well, in step with soybean futures," Zeng said.

 

In addition, "sluggish demand and overstocking further weighed on soymeal futures," he added.

 

Soyoil futures settled mostly down. The benchmark May 2007 soyoil contract fell RMB84 to settle at RMB6,705/tonne.

 

Corn futures settled mostly lower, but losses were relatively moderate, underpinned by strong fundamentals, analysts said.

 

The benchmark May 2007 contract settled RMB1 lower at RMB1,627/tonne, after trading between RMB1,621/tonne and RMB1,634/tonne.

 

Total trading volume for corn fell to 858,328 lots from 1,655,464 lots Monday.

 

"After the remarkable rises in previous weeks, spot corn prices still hold firm across China this week, supported by solid demand, offering help to (corn) futures," Gao added.