Monday: China soy futures settle up; external markets support

 

 

China's soy futures traded on the Dalian Commodity Exchange settled higher Monday, along with the rise in outside markets.

 

The benchmark September 2010 soy contract settled RMB35, or 0.9%, higher at RMB3,812 a metric tonne.

 

The contract opened higher and consolidated in a very tight range of RMB3,801-RMB3,825/tonne.

 

The market was initially supported by expectations the U.S. Department of Agriculture would cut its estimate for ending stocks of soy in its supply-demand report to be issued Tuesday.

 

The rise in outside markets, including metals, also helped to boost sentiment in agricultural products.

 

U.S. soy traded on the Chicago Board of Trade were supported at US$9 a bushel ahead of the possible favorable USDA report, but whether it can stabilize depends on the weather in South American soy areas, which will see harvest from March.

 

But analysts said there will be a lack of clear trading guidance before the Lunar New Year holiday starting later this week.

 

The trading volume of all soy contracts declined to 233,688 lots from 555,946 lots Friday.

 

Open interest fell 6,328 lots to 363,122 lots Monday.

 

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

 

Following are 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        Sep 2010      3,812        Up   35       233,688

Corn       Sep 2010      1,850        Up    3        31,794

Soymeal  Sep 2010      2,752        Up   28      568,722

Palm Oil  Sep 2010      6,766        Up  104      475,588

Soyoil     Sep 2010      7,358        Up   90       415,212