December 7, 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 soybean futures on the Chicago Board of Trade, analysts said.

 

The benchmark May 2007 contract settled RMB17 lower at RMB2,813 a metric tonne, after trading between RMB2,803/tonne and RMB2,822/tonne.

 

Total trading volume rose to 93,126 lots from 85,836 lots Wednesday. One lot is equivalent to 10 tonnes.

 

"Soybean futures opened lower today on the CBOT falls," said Ren Xiaoxu, an analyst at China International Futures Co.

 

But, "losses were narrowed a tad on short covering in the late session," he added.

 

Soymeal futures settled lower. The benchmark May 2007 soymeal contract fell RMB3 to settle at RMB2,303/tonne, after trading between RMB2,279/tonne and RMB2,319/tonne.

 

Total trading volume rose to 187,034 lots from 121,424 lots Wednesday.

 

"Soymeal futures prices found strong support from long buying at the current price level, as seen in the late session," said Gao Yanrong, an analyst at Dalu Futures Co.

 

Soyoil futures settled down. The benchmark May 2007 soyoil contract lost RMB101 to settle at RMB6,570/tonne.

 

Corn futures settled mostly lower, mainly due to the spillover effect of the fall in soy futures, analysts said.

 

The benchmark May 2007 contract settled RMB12 lower at RMB1,555/tonne, after trading between RMB1,546/tonne and RMB1,570/tonne.

 

Total trading volume for corn rose to 931,456 lots from 587,288 lots Wednesday.

 

"With fundamentals little changed, corn futures fell in step with soy futures today," Gao said.

 

"Losses were narrowed significantly on long buying in the late session as investors were still mostly bullish on corn," he added.