August 28, 2008


Thursday: China soybean futures settle down along with soymeal, soyoil



China's soybean futures traded on the Dalian Commodity Exchange settled lower Thursday, along with weakness in soymeal and soyoil prices.


The benchmark January 2009 soybean contract settled down RMB59, or 1.4%, at RMB4,271 per metric tonne, after trading in a range of RMB4,252-RMB4,296/tonne.


Processing plants stopped raising offered prices for cash soymeal as there are few factors likely to boost prices.


Cash trading of soymeal is light with prices above RMB4,100/tonne, and weakening hog prices curbed feedmeal companies' buying interest, according to a note from Tianqi Futures.


The large amount of imported soybean arrivals expected in the coming months also added to concerns about the waning of momentum behind further increases in prices.


But analysts said the government will support grain prices during the harvest season, as only stable prices can guarantee farmers' interest in planting for the next crop year.


Meanwhile, the strength of the rebound in crude oil prices and the dollar's performance will determine the degree of any recovery in the overall commodities market, they said.


Concerns about the weather in major soybean producing areas in the U.S. and China ahead of the final harvest also prevented traders from selling heavily.


"It is a market of positive and negative factors, neither of which are strong enough (to offset the other)," said Cui Ruijuan at Guangfa Futures Brokerage.


Soyoil futures, palm oil futures and soymeal futures settled mostly lower.


Corn futures settled little changed.


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


Contract             Settlement             Price              Change              Volume

Soybean              Jan 2009              4,271              Dn  59             1,003,564

Corn                   Jan 2009              1,746            Unchanged            198,204

Soymeal              Jan 2009              3,655              Dn  42                795,096

Palm Oil               Jan 2009              7,180              Dn 150                 51,602

Soyoil                  Jan 2009              9,002              Dn 180               499,064

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