Monday: China soy futures settle up amid hopes of econ recovery
China's soy futures traded on the Dalian Commodity Exchange settled higher Monday, amid expectations for higher commodities prices tracking a recovering economy.
The benchmark May 2010 soy contract settled RMB28 higher at RMB3,728 a metric tonne, up 0.8%.
Local agricultural futures' prices have been rising steadily after the week-long National Day holiday break, along with a rise in other markets such as equities.
"There are signs of inflation looming, and capital markets have been rising as a result," said Wang Xiaoguang, an analyst with Galaxy Futures.
The open interest of all benchmark contracts rose, and significantly in soymeal and soyoil contracts, an indication new funds were flowing into the market.
The upward momentum will continue for a while, Wang added.
China's economy expanded by 7%-8% in the January-September period versus a year ago, according to Xiong Bilin, an inspector with the Department of Industry at the National Development and Reform Commission.
Third-quarter GDP is expected to have grown 9.1% from a year earlier, according to the median forecast of 12 economists surveyed by Dow Jones Newswires. Official economic data for the third quarter are scheduled to be released Thursday.
The GDP grew 7.9% in the second quarter and 6.1% in the first quarter.
Trading volume of all soy contracts rose to 242,078 lots from 164,706 lots Friday.
The open interest rose 6,230 lots to 288,570 lots Monday.
Corn, palm oil, soyoil and soymeal futures all settled higher.
Monday's settlement prices in yuan a tonne for benchmark contracts and volume for all contracts in lots (one lot is equivalent to 10 tonnes):
Product Contract Settlement Price Change Volume
Soy May 2010 3,728 Up 28 242,078
Corn May 2010 1,748 Up 7 113,490
Soymeal May 2010 2,866 Up 18 1,974,660
Palm Oil May 2010 6,164 Up 78 188,476
Soyoil May 2010 7,234 Up 60 774,862
