November 29, 2006
Wednesday: China soybean futures settle down on bird flu in s korea
Soybean futures traded on the Dalian Commodity Exchange settled lower Wednesday, pressured by outbreaks of bird flu in South Korea over the past week, analysts said.
The benchmark May 2007 contract settled RMB27 lower at RMB2,920 a metric tonne, after trading between RMB2,888/tonne and RMB2,965/tonne.
Total trading volume rose to 159,100 lots from 117,458 lots Tuesday. One lot is equivalent to 10 tonnes.
"(Soybean) futures prices fell considerably today as the market was concerned about possible outbreaks of bird flu in China, following cases in South Korea," said Liu Xinghua, an analyst at Great Wall Futures Co.
"Spillover effects from declines in wheat futures today added to the bearish sentiment," said Zhang Yifan, a trader at China Grains & Oils Group Feed Corp.
Soymeal futures settled lower, in line with soybean futures. The benchmark May 2007 soymeal contract fell RMB13 to settle at RMB2,427/tonne, after trading between RMB2,401/tonne and RMB2,453/tonne.
Total trading volume rose to 166,822 lots from 125,236 lots Tuesday.
"Soymeal futures were lower today on long liquidation as news of bird flu outbreaks triggered profit-taking," Liu said.
"Overnight losses in soybean futures on the Chicago Board of Trade also pressured soy futures today," Zhang said.
Soyoil futures settled mostly down. The benchmark May 2007 soyoil contract fell RMB64 to settle at RMB6,641/tonne.
Corn futures also settled lower, pressured by outbreaks of bird flu in South Korea, analysts said.
The benchmark May 2007 contract settled RMB22 lower at RMB1,605/tonne, after trading between RMB1,640/tonne and RMB1,563/tonne.
Total trading volume for corn jumped to 2,442,924 lots from 858,328 lots Tuesday.
"In addition to bird flu outbreaks, market speculation that the Chinese government may work out policies soon to control runaway rises in grain prices also contributed to today's losses," Zhang added.
