August 11, 2008


Monday: China soybean futures settle sharply lower on CBOT tumble



China's soybean futures traded on the Dalian Commodity Exchange settled sharply lower Monday, tracking a tumble on the Chicago Board of Trade Friday.


The benchmark soybean futures contract hit limit-down right before the closing bell.


The benchmark January 2009 soybean contract settled RMB171 lower at RMB3,928 a metric tonne, or down 4.2%, after trading in a RMB3,895-RMB4,028/tonne range.


A stronger dollar, the decline in crude oil prices and a favorable weather outlook all drove funds out of the market.


Commodities' prices will likely fall further in the near term, with the benchmark November soybean contract on the CBOT likely to see initial support at US$11.50 per bushel, said Yu Haifeng, an analyst at Tianqi Futures, in a note.


The ample domestic supply helped keep soybean and soy products' prices at low levels.


China imported 3.5 million tonnes of soybean in July, up 15.5% on year, according to preliminary data issued by the General Administration of Customs Monday.


The country imported a total of 20.73 million tonnes of soybean in the first seven months, up 22.8%, it said.


China also imported 730,000 tonnes of edible vegetable oil in July, up 28% on year, the data showed.


The benchmark soybean oil, soybean meal and palm oil futures all hit limit-down during the session.


Corn futures also settled lower.


Monday'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           3,928           Dn 171           921,820

Corn                  Jan 2009           1,760           Dn  24            455,542

Soy Meal            Jan 2009           3,202           Dn 141           663,854

Palm Oil             Jan 2009           7,450           Dn 350             25,112

Soy Oil               Jan 2009           8,626           Dn 402           185,196

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