September 4, 2008
Thursday: China soybean futures settle down on CBOT tumble, crude fall
China's soybean futures traded on the Dalian Commodity Exchange settled lower Thursday, tracking an overnight fall on the Chicago Board of Trade and in crude oil.
The benchmark January 2009 soybean contract settled RMB65 lower at RMB4,172 a metric tonne, or down 1.5%, after trading in a tight range of RMB4,140-RMB4,197/tonne.
While pressure from weaker crude oil prices and a stronger dollar is weighing on the market, there are supportive factors such as a deterioration in the soybean crop condition in the U.S. and worries over a possible drought and early frost. As a result, players have turned cautious, awaiting clear guidance, said analysts.
CBOT's soybean futures may fall further due to a weak technical trend, but the uncertainty in the U.S. Department of Agriculture's September report on supply and demand is likely to help curb any fall, said Guangfa Futures.
Meanwhile, the higher input cost of domestic soybean has also limited the fall in cash prices, supporting futures prices, it said, and expects support for the benchmark contract at RMB4,100/tonne.
Soybean oil, palm oil futures, soybean meal and corn futures all settled lower.
The negative sentiment in the vegetable oil market continued along with the fall in crude oil prices and CBOT soy oil.
Cash purchasers stayed on the sidelines, unwilling to refill their stocks any time soon, said traders.
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 4,172 Dn 65 1,055,434
Corn Jan 2009 1,719 Dn 9 271,066
Soymeal Jan 2009 3,513 Dn 71 765,156
Palm Oil Jan 2009 7,328 Dn 62 55,758
Soyoil Jan 2009 8,892 Dn 112 404,600
