Wednesday: China soy futures settle tad up with rebound in CBOT

 

 

Soy futures traded on the Dalian Commodity Exchange settled higher Wednesday, following a rebound on the Chicago Board of Trade overnight.

 

The benchmark September 2010 soy contract settled up RMB12, or 0.3%, at RMB3,767 a metric tonne.

 

The contract opened higher, and consolidated around RMB3,760/tonne during the session, with performance mostly tracking the equities market.

 

CBOT soy have found support for now, trading above $9.00 per bushel, but increasing global soy supply and decreasing Chinese demand for U.S. soy may limit the rebound on the CBOT, analysts said.

 

Any rebound will be an opportunity to short-sell if there is no positive supply-demand news to support the prices, a local analyst said.

 

Cash market trading will be also less active ahead of the Lunar New Year holiday in mid-February, so support from local cash prices will also be limited.

 

Analysts expect soy prices to consolidate around current levels before the holiday.

 

Trading volume of all soy contracts declined to 303,682 lots from 394,920 lots Tuesday.

 

Open interest fell 4,756 lots to 353,858 lots Wednesday.

 

Corn futures, soyoil futures, palm oil futures and soymeal futures all settled higher.

 

Following are Wednesday's settlement prices in yuan a metric tonne for benchmark contracts and volume for all contracts in lots (One lot is equivalent to 10 tonnes):

 

              Contract   Settlement Price  Change   Volume

So          Sep 2010      3,767        Up   12    303,682

Corn       Sep 2010      1,859        Up   12    115,722

Soymeal Sep 2010      2,725        Up   16    714,012

Palm Oil  Sep 2010      6,674        Up   92    479,128

Soyoil    Sep 2010      7,282        Up   82     602,988