September 24, 2008


Wednesday: China soybean futures settle down on CBOT, overnight crude fall


Soybean futures traded on the Dalian Commodity Exchange settled lower Wednesday, in line with a fall on the Chicago Board of Trade and crude oil prices overnight.


The benchmark January 2009 soybean contract settled RMB29 lower at RMB4,020 a metric tonne after trading in a range of RMB3,985-RMB4,069/tonne.


CBOT soybeans fell back Tuesday after a two-session rebound in reaction to the U.S. government's bailout plan for the financial system, and local traders differ over whether the rebound has concluded for now, said Liu Xinghua, an analyst at Great Wall Futures Co.


The market is more focused on the U.S. financial crisis than supply and demand, and commodity markets may tumble anytime in the near term amid the uncertainties, said analysts.


There was some buying in the late session, helping to push soybean prices into positive territory.


The coming week-long National Day holiday also kept traders on the sidelines. China's financial markets will be closed from Sept. 29 through Oct. 5 for the holiday.


Fundamentals also don't support higher prices.


New domestic soybean supply from the ongoing autumn harvest and high soybean imports amid sluggish demand have pressured prices.


Open interest in all soybean contracts rose 21,984 lots to 453,440 lots Wednesday.


Corn futures, soymeal futures, soyoil futures and palm oil futures all settled lower.


Soybean processing plants have increased their sales volume of soyoil to make room for new soybean arrivals, but market demand remains weak on ample oilseed supply.


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


Contract         Settlement          Price        Change        Volume

Soybeans        Jan 2009           4,020        Dn   29      1,494,396

Corn              May 2009           1,766        Dn   12         307,188

Soymeal          Jan 2009           3,447        Dn    5         986,856

Palm Oil           Jan 2009           6,330        Dn  124        167,038

Soyoil              Jan 2009           8,156        Dn  202        719,550

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