June 10, 2011

 

Thursday: China's soy futures up slightly ahead of USDA report
 

 

Soy futures on the Dalian Commodity Exchange ended marginally higher Thursday (Jun 9) in a day of thin trade, tracking overnight gains in soy in the US, as investors await leads from the USDA's June supply-demand report due later in the day.

 

The benchmark January contract settled 0.2% higher at RMB4,483 (US$692)/tonne, trading in a narrow range of RMB4,471-4,493 (US$690-693)/tonne.

 

July CBOT soy rose 0.5% overnight to close at US$14.0150 a bushel on the back of strong corn and soymeal markets, but gains were capped by expectations that the USDA would raise its estimates of US 2010-11 and 2011-12 soy ending stocks in its report.

 

Soy prices may rise more due to low inventories with traders and farmers and sharply reduced acreage this year, analysts said.

 

Rising soymeal demand amid high pork prices will support soy prices, which were weak due to oversupply following high imports, he said.

 

China will likely import about five million tonnes of soy in June, 4% more than May estimates of 4.8 million tonnes, the state-backed China National Grain and Oils Information Centre said Thursday.

 

The projected June volume is 19% lower than a record volume last June.

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