December 19, 2006

 

Tuesday: China soybean futures settle mostly lower on CBOT losses

 

 

Soybean futures traded on the Dalian Commodity Exchange settled mostly down Tuesday, pressured by overnight falls in soybean futures on Chicago Board of Trade, analysts said.

 

The benchmark May 2007 contract settled RMB7 lower at RMB2,808 a metric tonne, after trading between RMB2,800/tonne and RMB2,815/tonne.

 

Total trading volume dropped to 53,948 lots from 55,296 lots Monday. One lot is equivalent to 10 tonnes.

 

"Soybean futures prices opened lower on CBOT falls today. But the losses were narrowed in the late session, thanks to support from (the soybean) spot market," said Xu Wenjie, an analyst at Tianma Futures Co.

 

"Supplies of soybeans are pretty tight on the spot market, with farmers seen reluctant to sell, expecting higher prices," he added.

 

Soymeal futures settled down. The benchmark May 2007 soymeal contract fell RMB9 to settle at RMB2,278/tonne, after trading between RMB2,268/tonne and RMB2,288/tonne.

 

Total trading volume rose to 96,756 lots from 93,324 lots Monday.

 

"In addition to CBOT losses, weakening soymeal prices on the spot market further weighed on soymeal futures," said Zhang Yifan, a trader at China Grains & Oils Group Feed Corp.

 

Soymeal prices were quoted around RMB2,100-RMB2,150/tonne in China this week, down RMB80-RMB100 from a week earlier.

 

Soyoil futures settled mostly down. The benchmark May 2007 soyoil contract lost RMB1 to settle at RMB6,595/tonne.

 

Corn futures settled mostly down, pressured by CBOT losses, according to analysts. But the benchmark May 2007 contract settled unchanged at RMB1,601/tonne, after trading between RMB1,592/tonne and RMB1,607/tonne.

 

Total trading volume for corn rose to 747,676 lots from 624,976 lots Monday.

 

"Corn prices held firm on the spot market in major corn growing regions lately, offering some help to (corn) futures prices," Zhang added.