October 27, 2008

             

Monday: China soybean futures settle lower tracking CBOT losses

                          

 

Soybean futures traded on the Dalian Commodity Exchange settled lower Monday, tracking losses Friday of its counterpart on the Chicago Board of Trade.

 

Grains futures across the world are being dragged down by weaker crude oil, other commodities such as base metals, as well as the rout in global financial markets.

 

Fundamentals of China's soybean market are also weak as output of the crop in the country is expected to rise 20% on year to 16.8 million tonnes in the marketing year that started Oct. 1, according to the U.S. Department of Agriculture.

 

China's soybean imports more than doubled on year in September, touching 4.13 million metric tonnes.

 

Still, analysts expect China's overall soybean imports in 2008 to either remain flat on year, or decline slightly, on higher domestic output.

 

Corn futures settled lower.

 

Palm oil and soy oil futures also took a cue from the hammering of crude palm oil futures at Bursa Malaysia Derivative, and ended lower.

 

Soymeal contracts, however, ended mixed.

 

Contract        Settlement         Price        Change          Volume

Soybean        May 2009          3,175        Dn  27         1,481,930

Corn             May 2009           1,645        Dn  14           313,178

Soymeal        Jan 2009            2,732       Up  18            782,540

Palm Oil         Jan 2009           4,414        Dn 134             63,344

Soyoil            Jan 2009           6,032        Dn 120           625,760