Friday: China soy futures settle down on CBOT fall; global supply worries

 

 

Soy futures traded on the Dalian Commodity Exchange settled lower Friday, following losses on the Chicago Board of Trade overnight.

 

The benchmark September 2010 soy contract settled down RMB16, or 0.4%, at RMB3,833 a metric tonne.

 

The contract opened lower and remain in negative territory for the whole session.

 

Trading was very light, with traders staying on sidelines ahead of the National People's Congress and Chinese People's Political Consultative Conference's annual meetings next week.

 

With global supply concerns weighing on the market and a lack of near-term trading guidance, the market is likely to continue consolidating in the near term, said Shi Yan, an analyst from Xinhu Futures.

 

Brazil and Argentina have started to harvest their soy, adding to supply pressure on the market.

 

There is little doubt that there will be a record-high harvest in South America, so the market will be focused on the NPC and CPPCC meetings, which will set the overall tonnee for the economy, he said.

 

Trading volume of all soy contracts declined to 192,002 lots from 220,884 lots Thursday.

 

Open interest rose 204 lots to 350,414 lots Friday.

 

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

 

Following are Friday'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      3,833        Dn   16    192,002

Corn       Sep 2010      1,870        Dn    3     53,692

Soymeal  Sep 2010      2,816        Dn   24    618,146

Palm Oil  Sep 2010      6,890        Dn   34    303,322

Soyoil     Sep 2010      7,460        Dn   38    318,416