BEIJING (Dow Jones)--China's soybean futures traded on the Dalian Commodity
Exchange settled lower Tuesday, but the fall was contained as some traders
sought bargain-hunting.

  The benchmark January 2010 soybean contract settled CNY14 lower at CNY3,285 a
metric ton, or down 0.4%, compared with a 4% fall Monday.

  Some market participants said swine flu may not be too much of a problem,
adding the domestic market overreacted to the outbreak yesterday.

  "Traders just use (the outbreak) as an excuse for correction, after the
recent surge (in prices)," said Xiao Jun, an analyst with Shanghai JCI, a
commodities consultancy firm, adding even if there were no outbreak, the market
was likely to correct as futures contracts were overbought.

  Soybean meal's cash prices have been under downward pressure recently.

  Meantime, the moderate reaction of U.S. stocks overnight and the market's
ability to hold up fairly well in the face of the news also showed traders have
digested the worst part of the news, said analysts.

  Chicago Board of Trade benchmark soybeans are likely to consolidate around
$10.00 a bushel in the near term, with support at $9.75, said Li Dongji, an
analyst with the Guotai Jun'an Futures Brokerage.

  However, Li Lei, an analyst with China National Cereals Trade Corp., warned
"the disease impact will continue (for some time) and we shouldn't blindly
follow (big buyers) in the market."

  The World Health Organization's top official in China said Tuesday Chinese
authorities have closed a school in the northern Shaanxi province where an
outbreak of swine flu is suspected.

  There are no confirmed cases of swine flu in China, but because the symptoms
of the disease are similar to the common cold and flu, health authorities are
investigating suspected cases in Shaanxi and elsewhere, said Hans Troedsson,
the WHO Representative in China.

  The trading volume of all soybean contracts declined to 248,144 lots from
380,166 lots Monday.

  The open interest fell 22,418 lots to 323,500 lots Tuesday.

  Corn and soybean oil futures settled slightly higher, while soy meal futures
and palm oil futures settled lower.

  Corn futures were supported by the government's purchases of cash corn from
the market, said analysts.

  Tuesday's settlement prices in yuan a metric ton for benchmark contracts and
volume for all contracts in lots (one lot is equivalent to 10 tons):

         Contract  Settlement Price  Change     Volume
Soybean  Jan 2010      3,285        Dn   14    248,144
Corn     Sep 2009      1,664        Up    9    160,906
Soymeal  Sep 2009      2,618        Dn   27  1,690,636
Palm Oil Sep 2009      6,046        Dn   60    487,034
Soyoil   Sep 2009      6,692        Up    2    724,770