Power transition, Japanese trade hit commodities

Base metal and soybean futures fell Tuesday as most commodities stayed close to par as concerns about China's economy continued to undermine prices.

The most traded copper contract on the Shanghai Futures Exchange (SHFE) fell 1.05 percent to close at 57,280 yuan ($9,161) per ton. The January copper contract drooped in afternoon trading after opening 0.05 percent below Monday's closing price.

The three-month copper contract on the London Metal Exchange (LME) was trading 0.3 percent lower at $7,919 per ton when the Chinese mainland markets closed Monday.

International base metal, crude oil and gold futures came under pressure late Monday after Japan's latest export numbers showed a 10.3 percent year-on-year decline according to the commodity analyst team at the Australian bank ANZ.

In China, however, commodities took most of their losses during the trading session, indicating internal factors.

"Everyone wants confirmation that the new Chinese leaders will introduce new policies to spur the economy, particularly in construction and property," a Shanghai-based trader told Reuters. "Base metals' recent price movements have merely been consolidations within a bearish trend. Eventually, prices will fall if nothing appears on the horizon to drive them up."

Meanwhile the most traded soybean contract on the Dalian Commodity Exchange fell 1.05 percent to close at 4,767 yuan per ton. The May contract tracked the benchmark November soybean future on the Chicago Board of Trade, which was trading down 0.7 percent at $15.356 per bushel when the mainland markets closed Tuesday.

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