Wednesday: China soy futures settle up on CBOT; touch 3-month high

 

 

China's soy futures traded on the Dalian Commodity Exchange settled higher Wednesday, along with the rise on Chicago Board of Trade overnight.

 

The benchmark September 2010 soy contract settled RMB20 a metric tonne higher at RMB3,799/tonne.

 

The contract opened higher, and broke through the resistant level of RMB3,800/tonne in the morning session, touching a three-month high of RMB3,818/tonne, as the rise in U.S. soy boosted market sentiment.

 

U.S. soy prices are likely to go higher in the near term amid the peak season for exports, supporting prices of local crops, said analysts.

 

But the recent strong rise in local prices isn't supported by fundamentals, and domestic soy may be under pressure with the government's detailed purchasing policies being digested, said Galaxy Futures in its note, adding that RMB3,750/tonne is the supporting level for the crop.

 

Looking forward, whether the DCE soy contract can stand effectively at RMB3,800/tonne will be a key in deciding the near-term trend, said analysts.

 

Trading volume of all soy contracts rose to 236,868 lots from 155,968 lots Tuesday.

 

Open interest rose 3,248 lots to 259,898 lots Wednesday.

 

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

 

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      3,799        Up      20     236,868

Corn        May 2010      1,762        Dn     1       82,250

Soymeal  Sep 2010      2,886        Up     23     1,647,900

Palm Oil   May 2010      6,464        Up     54    246,916

Soyoil      Sep 2010      7,674        Up     94     1,442,598