June 17, 2011

Soy futures on the Dalian Commodity Exchange ended slightly lower for a second consecutive session Thursday (Jun 16), pressured by sliding domestic equities and losses in crude oil overnight sparked by Europe's deepening debt crisis and a stronger US dollar.

The benchmark January soy contract settled 0.3% lower at RMB4,446 (US$687)/tonne. Trade volume remained thin as investors stayed on the sidelines due to concerns about Beijing's monetary tightening measures.

Oil for July delivery on the New York Mercantile Exchange fell Wednesday US$4.56, or 4.6%, to US$94.81 a barrel, off a four-month low of US$94.01 a barrel.

"I don't rule out the possibility that the price of soy in the US would test the US$13-a-bushel level, due to a lack of bullish news in the short term," analysts said. July CBOT soy closed flat at US$13.68/bushel Wednesday.

Soymeal prices rose marginally, with Chinese hog raisers rebuilding herds of hogs as soaring pork prices raise enthusiasm for expansion.