December 4, 2006

 

Monday: China soybean futures settle lower on CBOT losses

 

 

Soybean futures traded on the Dalian Commodity Exchange settled down Monday, pressured by Friday's losses in soybean futures on the Chicago Board of Trade, analysts said.

 

The benchmark May 2007 contract settled RMB37 lower at RMB2,854 a metric tonne, after trading between RMB2,843/tonne and RMB2,865/tonne.

 

Total trading volume declined slightly to 145,092 lots from 145,666 lots Friday. One lot is equivalent to 10 tonnes.

 

"Friday's CBOT losses, coupled with falls on e-CBOT this morning, contributed to declines in soybean futures today," said Zhang Yifan, a trader with China Grains & Oils Group Feed Corp.

 

"Supplies were increasingly abundant, with the pace of ongoing harvesting accelerated, also weighing on (soybean) futures," he added.

 

Soymeal futures settled lower, in line with soybean futures. The benchmark May 2007 soymeal contract fell RMB48 to settle at RMB2,344/tonne, after trading between RMB2,333/tonne and RMB2,362/tonne.

 

Total trading volume rose to 172,298 lots from 153,326 lots Friday.

 

"In addition to losses in soy futures on CBOT Friday, a quiet news front that provided no supportive features also pressured soymeal futures today," said Xu Wenjie, an analyst at Tianma Futures Co.

 

"The volume of import arrivals was nearly double from last week, weighing on (soymeal) futures prices," Zhang said.

 

Soyoil futures settled mostly down. The benchmark May 2007 soyoil contract fell RMB18 to settle at RMB6,684/tonne.

 

Corn futures settled lower. The benchmark May 2007 contract settled RMB16 lower at RMB1,574/tonne, after trading between RMB1,564/tonne and RMB1,587/tonne.

 

Total trading volume for corn declined to 1,104,486 lots from 1,294,536 lots Friday.

 

"Corn futures prices dropped on long liquidation today, with investors anticipating further downward corrections after gains in previous weeks," Xu said.