BEIJING (Dow Jones)--Soybean futures on the Dalian Commodity Exchange fell
Tuesday as weak domestic consumption cut into crushing margins amid pervasive
worries over increasingly bleaker macroeconomic conditions.
The most actively traded September soybean contract settled 0.4% lower at
CNY4,266 a metric ton.
"Worries about the euro are leading market sentiment globally, bringing asset
classes downward systemically," Nanhua Futures analyst Huang Yinyan said.
While there was no major news on soybean demand-supply fundamentals setting a
clear price direction Tuesday, trade was thin due to market perceptions of tepid
domestic consumption.
"Crushing margins have been low and are still decreasing," Huang said,
pointing to losses of around CNY53/ton for processing each ton of domestic
beans.
U.S. soybean and grain futures fell Monday as the market resumed focusing on
Europe's debt crisis and weak global demand, and as the euro fell versus the
U.S. dollar.
Chicago Board of Trade soybeans staged a weak recovery during Asian hours
Tuesday, with the nearby contract up less than one cent at $11.27 a bushel at
0715 GMT, though corn and soyoil futures continued to soften.
Despite lower global prices, China's soybean imports are expected to weaken.
"Imports have been declining [on a sequential monthly basis] since [July], not
just for soybeans but also for edible oils," Huang said, pointing to slack
domestic demand.
A Ministry of Commerce forecast suggests Chinese November soybean imports may
reach a relatively high 5.63 million tons, but the ministry had overshot its
October estimate by more than 1 million tons. Chinese customs authorities are
expected to release trade data Saturday.
Settlement prices in yuan a metric ton for benchmark contracts and volume for
all contracts in lots (One lot is equivalent to 10 tons):
Product Contract Settlement Price Change
Soybean Sep 2012 4,266 Down 16
Corn Sep 2012 2,220 Up 1
Soymeal May 2012 2,791 Down 26
Palm Oil May 2012 7,966 Down 38
Soyoil May 2012 8,810 Down 56
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