Monday: China soy futures settle down, track tumble in equities

 

 

China's soy futures traded on the Dalian Commodity Exchange settled lower Monday, tracking a tumble in the country's stock market.

 

The benchmark May 2010 soy contract settled RMB30 a metric tonne lower, or 0.8%, at RMB3,698/tonne.

 

Local stock markets fell sharply Monday on talks of a slowdown in lending amid expectations of more initial public offers being made.

 

The benchmark Shanghai Composite Index ended down 6.7% at 2667.75, the lowest since the May 27 close of 2632.93. It was also the biggest single-day percentage decline since the 7.7% fall in 2008.

 

New yuan loans in China may fall to less than RMB300 billion for the month, from RMB356 billion in July and RMB1.53 trillion in June, the Economic Observer reported Sunday, citing banking industry sources.

 

Futures contracts - from agricultural products to metals and fuel oil - broadly declined on concerns of that liquidity may tighten.

 

Trading volume of all soy contracts rose to 206,850 lots from 174,148 lots Friday.

 

Open interest fell 5,730 lots to 290,884 lots Monday.

 

Corn, soymeal, soyoil and palm oil futures settled lower.

 

Despite edible oils falling by a larger extent Monday, analysts said prices could be supported by rising demand ahead of the upcoming National Day holiday and the mid-autumn festival season, which are both in October.

 

The negative impact of an el nino weather pattern on oil palm output may help to lend support to palm oil prices, they added.

 

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):

Soy         May 2010      3,698        Dn   30     206,850

Corn       May 2010      1,755        Dn    8      441,806

Soymeal  May 2010      2,906        Dn   20    1,794,568

Palm Oil   May 2010      6,350        Dn  170    543,606

Soyoil      May 2010      7,450        Dn  160    892,674