December 3, 2007

 

Monday: China soybean futures settle mixed; CBOT fall weighs on market

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mixed Monday, weighed down by Friday's losses on the Chicago Board of Trade and worries about temporary oversupply following the arrival of a large amount of imports.

 

The benchmark September 2008 soybean contract settled RMB18 higher at RMB4,271 a metric tonne, after trading between RMB4,245/tonne and RMB4,295/tonne.

 

Total trading volume fell to 761,190 lots from 1,380,346 lots Friday. One lot equals 10 tonnes.

 

"Position squaring in the session indicated cautious sentiment among market participants, although cash values remained relatively strong," said Gao Yanrong, an analyst with Dalu Futures Co.

 

Given the current prices around RMB4,200 and the government's moves to control inflation, it is likely that prices may soften a bit in the short term, especially when the imports have alleviated the previously tight supply, Gao said.

 

Corn futures settled mostly a tad higher.

 

"The transportation bottleneck as we're approaching the year-end, is looming, and this will lend some support to corn prices," said a trader in Beijing.

 

Overall, agricultural commodities are due for consolidation, following recent sharp gains, he added.

 

Monday's settlement prices in yuan a metric tonne and volume for all contracts in lots:

 

                  Contract       Price      Change     Volume

Soybeans    Sep 2008      4,271      Up  18     761,190

Soymeal     May 2008      3,231      Dn  10    1,035,362

Soyoil         May 2008      9,312      Up  76      97,826

Corn           May 2008      1,762      Up   6     471,456

Palm Oil      May 2008      8,540      Up  28      22,952