December 18, 2006

 

Monday: China soybean futures settle lower on CBOT losses

 

 

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

 

The benchmark May 2007 contract settled RMB20 lower at RMB2,815 a metric tonne, after trading between RMB2,809 and RMB2,824/tonne.

 

Total trading volume fell to 55,296 lots from 62,858 lots Friday. One lot is equivalent to 10 tonnes.

 

"In addition to the CBOT losses Friday, falls in e-CBOT this morning further pressured soybean futures," said Liu Xinghua, an analyst at Great Wall Futures Co.

 

"Sentiment was cautious, with trading volume remaining thin," he added.

 

Soymeal futures settled down. The benchmark May 2007 soymeal contract fell RMB25 to settle at RMB2,287/tonne, after trading between RMB2,281 and RMB2,300/tonne.

 

Total trading volume rose to 93,324 lots from 81,074 lots Friday.

 

"Soymeal futures fell today mainly on short selling," Liu said.

 

"High stock levels coupled with lower than expected year-end demand weighed on investors' confidence," Liu added.

 

Soyoil futures settled mostly down. The benchmark May 2007 soyoil contract lost RMB47 to settle at RMB6,596/tonne.

 

Corn futures settled lower, in step with soy futures. The benchmark May 2007 contract settled RMB8 lower at RMB1,601/tonne, after trading between RMB1,593 and RMB1,608/tonne.

 

Total trading volume for corn rose to 624,976 lots from 591,872 lots Friday.

 

"The government is taking measures to curb sharp rises in corn prices witnessed lately, pressuring (corn) futures," Liu said.

 

In order to safeguard food security, the National Development and Reform Commission, China's top economic planner, has suspended approval of corn processing projects and will soon conduct an inspection of projects in construction, the official Xinhua News Agency reported Monday.