November 30, 2006

 

Thursday: China soybean futures settle mostly lower on CBOT losses

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mostly down Thursday, pressured by overnight losses in soy futures on the Chicago Board of Trade and lack of fresh buying interest, analysts said.

 

The benchmark May 2007 contract settled RMB9 lower at RMB2,911 a metric tonne after trading between RMB2,904/tonne and RMB2,921/tonne.

 

Total trading volume dropped to 91,628 lots from 159,100 lots Wednesday. One lot is equivalent to 10 tonnes.

"CBOT's losses weighed on today's soybean futures," said Li Honglei, an analyst at Nanhua Futures Co.

 

"Market sentiment was cautious and (it was quiet on) the news front. Investors were liquidating positions," he added.

 

"Long liquidation, coupled with the lack of speculative buying interest, led to losses in soybean futures," 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 RMB2,414/tonne, after trading between RMB2,408/tonne and RMB2,422/tonne.

 

Total trading volume dropped to 71,892 lots from 166,822 lots Wednesday.

 

"Investors turned a little bearish as supplies of soybean may rise soon, with farmers and grain traders seen active in selling lately," said Li.

 

Soyoil futures settled mostly up. The benchmark May 2007 soyoil contract rose RMB66 to settle at RMB6,707/tonne.

 

Corn futures settled lower. The benchmark May 2007 contract settled RMB15 lower at RMB1,590/tonne, after trading between RMB1,578/tonne and RMB1,601/tonne.

 

Total trading volume for corn fell to 1,499,832 lots from 2,442,924 lots Wednesday.

 

"Harvest pressure is surfacing with newly harvested corn starting to arrive in the market in large quantities," Li said.

 

"Lossed narrowed a tad in the late session today on fresh buying," Zhang added.