Monday: China soy futures settle higher with other commodities

 

 

Soy futures traded on the Dalian Commodity Exchange settled higher Monday, along with other commodities.

 

The new benchmark September 2010 soy contract settled up RMB16 a metric tonne at RMB3,727/tonne.

 

The contract opened in positive territory and edged higher with gains in other commodities such as metals.

 

Expectations that the dollar will continue to fall also helped speculative buying, said a trader with a foreign trading house who declined to be named.

 

But there isn't much upward momentum because prices are already high compared with cash prices, he added.

 

The market has been eyeing the government's reserve policies on the new crop, and many traders have remained on the sidelines ahead of their launch.

 

There are local reports that the government may issue the policies as soon as later this month, with higher purchase prices than last year's widely expected.

 

Trading volume for all soy contracts declined to 230,854 lots from 246,888 lots Friday.

 

Open interest fell 10,354 lots to 273,342 lots.

 

Corn futures settled little changed while soymeal futures, palm oil futures and soyoil futures all settled higher.

 

Monday'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         Sep 2010      3,727        Up     16       230,854

Corn        May 2010      1,748       Up     1          54,278

Soymeal  May 2010      2,880        Up     9      1,473,092

Palm Oil  May 2010      6,242        Up      6        278,022

Soyoil     May 2010      7,364        Up     24       963,646