June 16, 2009

China's soy futures traded on the Dalian Commodity Exchange settled lower Tuesday, tracking the Chicago Board of Trade's overnight tumble.

 

The benchmark January 2010 soy contract settled 0.1% lower at RMB3,645 a metric tonne.

 

The sell-off in commodities overnight suggests that downward pressure could continue in the near term, but it is still a correction rather than a change in direction, Tianqi Futures said in a note.

 

Traders stayed on the sidelines amid weaker crude oil and a stronger dollar.

 

The China National Grain and Oils Information Center said in a report issued Tuesday that China's soy imports in the 2009-10 crop year that begins Oct. 1 are likely to fall 7.5% to 37 million tonnes, due in part to ongoing increased government stockpiling of domestic soy, which is shifting demand overseas.

 

Meanwhile, margins associated with imported soy are expected to narrow as global soy prices rise, which could damp demand, it said.

 

Trading volume of all soy contracts declined to 233,610 lots from 321,028 lots Monday.

 

Open interest fell 3,416 lots to 364,060 lots Tuesday.

 

Corn futures settled unchanged, soymeal futures settled slightly lower and soyoil and palm oil futures settled higher.

 

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           3,645        Dn    5        233,610

Corn               Jan 2010           1,617         Unch            88,606

Soymeal          Jan 2010           2,904        Dn    2     2,118,848

Palm Oil           Jan 2010           6,260        Up   28       292,078

Soyoil              Jan 2010           7,604        Up   68    1,179,354