Wednesday: China soy futures settle down; equities prompt profit-taking

 

 

Soy futures traded on the Dalian Commodity Exchange settled lower Wednesday, as broad losses in Asian equities markets triggered profit-taking.

 

The new benchmark September 2010 soy contract settled RMB22 a metric tonne lower at RMB3,683/tonne, or down 0.6%.

 

"Commodities have accumulated big gains since the National Day holiday, and there is a need for traders to take profits," said Xu Wenjie, an analyst with Tianma Futures Co.

 

Asian share markets were lower Wednesday as shipping stocks and shipbuilders fell on worries about the strength of the global economic recovery.

 

The extent of any further downward correction in commodities in coming sessions will depend on the strength of the dollar's rebound and the correction in global equities, analysts said.

 

Declines in agricultural products could be smaller than in metals, however, as their gains weren't as large either, and many traders are bargain-hunting, Xu said.

 

Trading volume of all soy contracts rose to 162,938 lots from 127,638 lots Tuesday.

 

Open interest fell 3,880 lots to 269,032 lots Wednesday.

 

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

 

Wednesday'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):

 

              Contract       Settlement Price  Change     Volume

Soy          Sep 2010      3,683        Dn     22         162,938

Corn        May 2010      1,734        Dn      8           88,738

Soymeal  May 2010      2,820         Dn     28        1,592,206

Palm Oil   May 2010      6,130        Dn      14         233,110

Soyoil      May 2010      7,264        Dn       6          970,148