July 10, 2008


Thursday: China Soybean Futures Settle Mostly Down On Supply Pressure



China's soybean futures traded on the Dalian Commodity Exchange settled mostly lower Thursday, on worries of an increase in supplies.


The benchmark January 2009 soybean contract settled RMB4 lower at RMB4,946 a metric tonne, or down 0.08%.


The soybean contract fell in the afternoon session, after customs data showed a sharp rise in imports of the commodity in June, reversing gains earlier in the day.


China imported 3.58 million tonnes of soybeans in the June, 42% more than a year ago, according to preliminary data issued by the General Administration of Customs Thursday.


The country's import rose 24.4% on year to 17.23 million tonnes of soybean in the first half of this year, it said.


Soybean imports may have surged on government's purchases to increase stock reserves, analysts said. Soybean stocks at ports have risen amid a seasonal slowdown in soyoil demand, they said.


Prices may fall further, and the bull market may end if weather in the U.S. and domestic soybean producing areas remain favorable, said Gao Yunyue, an analyst at Dadi Futures Brokerage.


Analysts expect growth in China's soybean imports to slow in the second half on increased supplies.


Expected good harvest in September, deferred imports from Argentina due to a farmers' strike will curtail imports, said Dong Shuangwei, an analyst at Capital Futures.


But, total soybean imports this year will still exceed 30 million tonnes, or higher than 30.82 million tonnes in 2007, some said.


Soyoil futures, palm oil futures and corn futures all settled lower, while soymeal futures settled higher.


China's corn exports fell three-fourths to 40,000 tonnes in June compared with 160,399 tonnes a year ago, the customs data showed.


Imports of edible vegetable oil rose 6.3% on year to 510,000 tonnes, it said.


Thursday's settlement prices in yuan a metric tonne and volume for all contracts in lots (One lot is equivalent to 10 tonnes):


Contract          Settlement          Price          Change          Volume

Soybean           Jan 2009           4,946           Dn   4          664,272

Corn                 Jan 2009          1,878           Dn   3          303,590

Soymeal           Jan 2009           3,976           Up  31       1,606,050

Palm Oil           Sep 2008         10,462           Dn  26           21,934

Soyoil               Jan 2009         11,540          Dn  64          112,616

Video >

Follow Us