May 14, 2009
Thursday: China soy futures settle down, in tandem with domestic markets
China's soy futures traded on the Dalian Commodity Exchange settled lower Thursday, in tandem with other domestic markets.
The benchmark January 2010 soy contract settled RMB44 a metric tonne lower at RMB3,451/tonne, or down 1.3%.
The broad losses across domestic markets, from metals to equities, gave traders an excuse to take profits in soy and soy products, analysts said.
"Domestic commodities are correcting their earlier gains," said Wang Xiaoguang, an analyst with Galaxy Futures, adding there was also pressure from the crude oil price, which faces resistance as it is nearing US$60 a barrel.
Additional pressures from substantial imported soy arrivals and weak soymeal demand also plagued the soy complex.
China confirmed Wednesday its second case of A/H1N1 influenza, which analysts said may affect pork consumption and thus feedmeal demand for soymeal.
Trading volume of all soy contracts declined to 167,070 lots from 206,722 lots Wednesday.
Open interest rose 9,278 lots to 346,608 lots Thursday.
Corn futures settled little changed, soymeal futures settled unchanged while soyoil futures and palm oil futures settled lower.
Thursday'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
Soy Jan 2010 3,451 Dn 44 167,070
Corn Sep 2009 1,667 Up 1 65,086
Soymeal Sep 2009 2,810 Unch 1,496,496
Palm Oil Sep 2009 6,850 Dn 178 395,098
Soyoil Sep 2009 7,636 Dn 162 1,208,902
