Thursday: China soy futures settle up on helongjiang frost warning

 

 

Soy futures rose on the Dalian Commodity Exchange Thursday after the country's largest soy-producing province issued a frost warning.

 

The benchmark May 2010 soy contract settled 0.8% higher at RMB3,680 a metric tonne.

 

Heilongjiang province warned residents and farmers in a statement of an upcoming frost it said will last until September 21.

 

"The frost threat announcement largely helped soy futures prices on Dalian exchange, and that's why you see the benchmark May (2010) contract was greatly boosted in the last half hour of trading," Dalu Futures analyst Gao Yanrong said.

 

Analysts said Dalian soy prices will likely be well-supported in coming sessions as participants expect frosty weather to ease oversupply concerns somewhat.

 

The government has sold about 2% of the 4 million tonnes of state soy reserves it wants to sell, achieving a 3% success rate in weekly sales that began July 21, the China Grain and Oil Information Center said in a statement Wednesday.

 

             Contract        Settlement Price       Change          Volume

Soy        May 2010          3,680                     Up   30         230,706

Corn       May 2010          1,743                    Dn    1          140,694

Soymeal  May 2010          2,783                    Unch            1,001,862

Palm Oil  May 2010          5,994                     Up   50         421,946

Soyoil     May 2010          7,070                     Up   38         440,844