June 22, 2009
Monday: China soy futures fall tracking CBOT, oversupply concerns
Soy futures on the Dalian Commodity Exchange fell Monday, tracking Friday's retreat on the Chicago Board of Trade as oversupply concerns piled on the selling pressure.
The benchmark January 2010 soy contract declined 1.3% to RMB3,600 a metric tonne.
"The concern over high levels of imports is getting more acute," said Tu Xuan, a soy analyst with Shanghai JC Intelligence Co. "Now the market is awaiting cues from the U.S. Department of Agriculture report next week."
The USDA is expected to release its estimate of U.S. plantings of soy, corn and wheat on June 30.
Market expectations that the Chinese government is poised to begin selling its soy stockpile has also fueled supply pressures, though there has been no confirmation of such sales.
Data from the General Administration of Customs Monday showed high import levels persisting, up 1.2% from the same month last year to 3.52 million metric tonnes in May. In the January-May period, soy imports increased 27% on year to 17.4 million tonnes.
Chicago Board of Trade soy tumbled 3% Friday on bearish private acreage estimates, an improved weather outlook for Midwest crops and a lack of fresh supportive news.
Corn, soymeal, palm oil and soyoil futures all settled lower on the Dalian exchange Monday.
Corn exports, which have largely been weak this year, rose sharply on year in May to 15,966 tonnes, but all of it was exported to North Korea, likely as an aid package, analysts said.
Monday'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 3,600 Dn 46 131,862
Corn Jan 2010 1,621 Dn 6 86,042
Soymeal Jan 2010 2,850 Dn 64 1,309,598
Palm Oil Jan 2010 6,096 Dn 58 342,598
Soyoil Jan 2010 7,402 Dn 112 554,394
