June 3, 2011

 

Fresh buying lifts China's soy futures
 

 

Soy futures on the Dalian Commodity Exchange ended slightly higher Thursday (Jun 2) on the back of fresh buying by traders, tracking gains in soy on the CBOT with support from poor weather that could limit US soy plantings.

 

The benchmark January contract settled up 0.3% at RMB4,466 (US$689)/tonne, after trading in a narrow range of RMB4,449-4,479 (US$686-691)/tonne. July CBOT soy rose 0.7% overnight to close at US$13.8625 a bushel.

 

Trading volume rose sharply from Wednesday's 3.5-month low of 75,168 lots to 167,340 lots.

 

The high cost of imported soy will continue to lend support to soy futures, but the government's massive sales of state soy and edible oil reserves will also continue to provide resistance, analysts said.

 

Imported soy for July delivery are priced between RMB4,350-4,480 (US$671-691)/tonne on a cost-and-freight basis, compared with current prices in major ports of around RMB4,050 (US$625)/tonne.

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