July 8, 2009
Wednesday: China soy futures settle down after overnight tumble on CBOT
Soy futures traded on the Dalian Commodity Exchange settled sharply lower Wednesday, following an overnight tumble on the Chicago Board of Trade.
The most actively traded January 2010 soy contract settled RMB102 a metric tonne lower at RMB3,519/tonne, down 2.8%.
A technical correction, favorable weather and bearish economic signals from external markets sent CBOT soy contracts nearly limit-down Tuesday.
Analysts believe the upward correction in commodities since the start of this year is nearing an end.
A fall in the Dow Jones Industrial Average, agricultural products and crude oil indicates that traders are no longer optimistic, said Tianqi Futures in a note, adding the market may test the bottom again.
"(The benchmark January contract on the DCE) lacked the momentum to rebound during the session, and the fall is likely to continue (for a while)," said Li Lei, an analyst at China National Cereals Trade Corp.
Trading volume for all soy contracts rose to 182,632 lots from 142,902 lots Tuesday.
Open interest fell 2,004 lots to 350,026 lots.
Corn futures, soyoil futures, soymeal futures and palm oil futures also settled lower.
Wednesday's settlement prices in yuan a metric tonne for benchmark contracts and the volume for all contracts in lots (One lot is equivalent to 10 tonnes):
Contract Settlement Price Change Volume
Soy Jan 2010 3,519 Dn 102 182,632
Corn Jan 2010 1,604 Dn 6 117,370
Soymeal Jan 2010 2,773 Dn 113 1,429,542
Palm Oil Jan 2010 5,542 Dn 232 570,780
Soyoil Jan 2010 6,926 Dn 260 940,106
