June 21, 2011

Soy futures on the Dalian Commodity Exchange fell Monday (Jun 20) for a fourth consecutive session, in line with declines in crude oil and other commodities due to concerns about Greece's fiscal crisis and about global growth and demand.

The benchmark January soy contract settled 0.4% lower at RMB4,397 (US$679)/tonne in thin trade.

Sentiment remained bearish with domestic soy markets unable to shrug off concerns about oversupply despite sharply reduced domestic acreage.

Port soy stocks have climbed to record levels and continued to increase, as many domestic crushers have suspended operations due to losses caused by the government's price caps.

With around seven million tonnes of soy at warehouses in ports, supply is ample, the state-controlled China National Grain and Oils Information Centre said in a research note.

"As Chicago Board of Trade soy will find some support at around US$13/bushel, we expect soy to stabilise later this week," analysts said. July CBOT soy closed down 1.3% at US$13.33/bushel on Friday.

Strong demand for soymeal due to expanding hog production amid high pork prices will also underpin soy prices, experts added.