Market News & Headlines >> China's Soy Futures Hit by Speculation Concerns
Soybean futures on China’s Dalian Commodity Exchange slid about 6.0% between Friday and Wednesday under pressure from talk of increased government efforts to crack down on speculative trading following a strong price run-up in a number of commodity markets.
Most-active January soybean futures on the Dalian exchange settled on Wednesday at 3,695 yuan per metric ton, down from 3,930 yuan per ton on Friday.
A broad sell-off hit a variety of futures markets including steel, steelmaking materials, base metals and agricultural products after several commodity exchanges raised transaction fees and margins significantly last week. The new measures reduced market liquidity and spurred talk that the government would take even stronger measures, causing speculators to pull out their money.
The sell-off capped a historic run-up in a number of futures markets that was powered in part by Donald Trump’s victory in the U.S. presidential election. Most-active January iron ore futures on the Dalian Commodity Exchange soared 23% last week and hit a 33-month high on Monday.
Dalian iron ore futures, which had risen by their daily limits in the previous four trading sessions fell 6% on Tuesday, closing limit down. Rebar futures in Shanghai also fell 6%, while coke futures were down nearly 9% in Tuesday trade.