Tuesday: China soy futures rise, track CBOT; lack other demand cues

 

 

Soy futures rose on the Dalian Commodity Exchange Tuesday, tracking the Chicago Board of Trade in the absence of other clear directional cues.

 

The benchmark September 2010 soy contract settled up RMB27 or 0.7% at RMB4,023 a metric tonne.

 

"Without the market sending any other clear signals, domestic soy prices have been closely following CBOT," said Tu Xuan, soy analyst with Shanghai JC Intelligence Co.

 

CBOT soy futures finished sharply higher Monday after rallying in late dealings amid technical buying, traders said.

 

China soy prices are expected to trade steadily upward in the coming months, Tu said.

 

"Demand will rise in January as it gets closer to Chinese New Year, and we'll expect to see prices stable to rising," she said.

 

Trading volume for all soy contracts rose to 326,088 lots from 316,532 lots Monday.

 

Open interest fell 8,774 lots to 346,466 lots.

 

Corn, palm oil, soyoil and soymeal futures also rose.

 

Tuesday'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       4,023        Up    27       326,088

Corn       Sep 2010      1,872        Up     4         85,154

Soymeal  Sep 2010      3,009        Up    12     1,112,840

Palm Oil   Sep 2010      7,056        Up    78      566,830

Soyoil      Sep 2010      7,870        Up    60      719,672