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