Friday: China soy futures settle down; US planting area in focus

 

 

China's soy futures traded on the Dalian Commodity Exchange settled lower Friday, along with a fall on the Chicago Board of Trade overnight amid expectations of higher planting area in the U.S.

 

The benchmark September 2010 soy contract settled down RMB20, or 0.5%, at RMB3,845 a metric ton.

 

The contract opened lower, and consolidated within a tight range of RMB23/ton in the negative territory for the whole session.

 

A stronger dollar and sluggish feedmeal demand for soymeal, as well as weak cash soy prices, pressured prices, said analysts.

 

The market expects soy area in the U.S. this year to increase; traders thus stayed on the sidelines, said Galaxy Futures in a note.

 

However, demand for imported soy will remain high as China's soy area is likely to be lower in 2010 versus last year, said Heilongjiang Jiusan Oil and Fat Co. in a note, adding soy prices will be supported in the longer run with the economic recovery and the government's purchases.

 

Trading volume of all soy contracts rose to 152,900 lots from 108,730 lots Thursday.

 

Open interest rose 2,150 lots to 346,132 lots Friday.

 

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

 

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

 

Product   Contract    Settlement Price     Change     Volume

Soy        Sep 2010      3,845          Down   20    152,900

Corn       Sep 2010      1,915            Up    5     60,686

Soymeal  Sep 2010      2,805          Down   17    798,964

Palm Oil  Sep 2010      6,858          Down   34    225,736

Soyoil     Sep 2010      7,476          Down   52    340,790