DJ China Soybean Futures Fall On Profit Taking, EU Concerns 17.11.2011
BEIJING (Dow Jones)--Soybean futures on the Dalian Commodity Exchange fell Thursday in thin trade, as investors took profits and remain worried about Europe's ongoing sovereign debt crisis.
Benchmark September soybeans settled 0.3% lower at CNY4,353 a metric ton, trimming this week's gains to 1.1%.
Market talk of China's state stockpiler resuming U.S. soybean purchases due to attractive prices had led to gains this week, analysts said.
China National Grain Reserves Corp. Tuesday bought around 500,000 tons, part of its plan to buy 2 million tons, traders said.
But concerns over Europe's debt crisis lingered, and speculators remained on the sidelines.
The trade volume of all soybean contracts fell to the lowest level this week to 132,826 lots. One lot of soybeans on the DCE is equivalent to 10 tons.
The much-anticipated state-set soybean purchase price for reserves also fell below market expectations, damping sentiment.
The Chinese government will stockpile soybeans around CNY4,000/ton soon, traders said. The price is much lower than the market's expectations of CNY4,200-CNY4,600/ton and lower than current market prices of CNY4,100-CNY4,200/ton.
Farmers would be reluctant to sell at that level, traders said.
Thursday's settlement prices in yuan a ton for benchmark contracts:
Product Contract Settlement Price Change Soybean Sep 2012 4,353 Down 15 Corn May 2012 2,212 Down 1 Soymeal May 2012 2,889 Down 12 Palm Oil May 2012 8,274 Up 40 Soyoil May 2012 9,230 Up 2