May 19, 2009

Soy futures ended higher Tuesday on the Dalian Commodity Exchange, buoyed by external markets along with the rest of the commodities complex.

 

The benchmark January 2010 soy contract gained 1% to settle at RMB3,473 a metric tonne.

 

Soys benefited from firmer crude oil, said Gao Yanrong of Dalu Futures.

 

"External markets have been bullish for soy prices," Gao said. "Brazilian weather is adversely affecting their exports, and that's supportive for soy prices."

 

Soy imports are expected to remain firm in May at a projected 4.2 million tonnes, but they will taper off as rising import prices turn traders back to the domestic market.

 

Chicago Board of Trade soy futures ended higher Monday, recouping Friday's losses on bullish fundamentals, outside market strength and planting uncertainties.

 

"The latest U.S. Commodity Futures Trading Commission data showed a general trend of favorable positioning to the long side of the market," Barclays Capital said in a note late Monday.

 

Soymeal and edible oil futures settled up Tuesday. while corn futures edged lower.

 

"The slower U.S. crush pace and export business to replace missing Argentine meal are providing ongoing support to meal," Agricharts said in a note Tuesday.

 

Tuesday'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          3,473        Up   34        125,572

Corn               Sep 2009          1,677        Dn    2          77,242

Soymeal         Sep 2009           2,903        Up   48    1,309,884

Palm Oil          Sep 2009           6,706        Up  152      399,360

Soyoil             Sep 2009           7,458        Up  132   1,089,142