July 16, 2008

 

Wednesday: China soybean futures settle lower after tumble on CBOT

 

 

China's soybean futures traded on the Dalian Commodity Exchange settled lower Wednesday, in line with a tumble at Chicago Board of Trade overnight.

 

The benchmark January 2009 soybean contract settled RMB62, or 1.2%, lower at RMB4,901 a metric tonne after trading between RMB4,884-RMB4,920/tonne.

 

Trading was cautious, weighed down by the favorable weather outlook in U.S. Midwest major soybean growing areas and a big fall in crude oil prices overnight.

 

Argentina's Senate is slated to vote on a bill Wednesday on a sliding-scale grain export tax imposed in March; the vote is likely to end the four-month farmers' strike there - thus increasing the global supply of soybeans, analysts said.

 

Angry farmers reacted to higher duties on grain shipments by staging a series of crippling strikes and roadblocks that caused food shortages in cities, cut off grain exports and hampered nationwide transportation.

 

The benchmark contract traded within a very narrow range Wednesday, with negative sentiment leading the market, said Yu Haifeng, analyst at Tianqi Futures, in a note.

 

The steep slide for crude oil prices overnight kept traders on the sidelines, and high palm oil stocks at Chinese ports also pressured palm oil prices, analysts said.

 

Soyoil, palm oil and soymeal futures also settled lower, while corn futures settled mostly unchanged.

 

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

 

Contract          Settlement          Price          Change          Volume

Soybean           Jan 2009           4,901          Dn  62           556,986

Corn                 Jan 2009          1,908       Unchanged       353,282

Soymeal           Jan 2009           3,931          Dn  60          746,198

Palm Oil           Sep 2008         10,350          Dn  52            17,714

Soyoil               Jan 2009         11,440          Dn  56          154,020
   

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