July 10, 2009

                           

 

Soy futures traded on the Dalian Commodity Exchange settled higher Friday on follow-through buying, in line with overnight gains in Chicago Board of Trade counterparts.

 

The most actively traded January 2010 soy contract settled 0.1% higher at RMB3,536 a metric tonne.

 

Dalian soy contracts will likely stay in consolidation in coming sessions, in tandem with external cues, analysts said.

 

"Oversupply concerns due to high imports in recent months will also likely drag down (soy) prices, but overall cues from other commodities, like crude oil, will have a larger impact on soy prices," said Wang Xiaoguan, an analyst with Galaxy Futures.

 

Since unfavorable weather that threatened crops in major soy producing areas earlier in the growing season has abated and stopped serving as cues, participants will turn to macroeconomic data for decision-making, he added.

 

Trading volume for all soy contracts rose to 207,146 lots from 118,572 lots Thursday.

 

Open interest rose by 12,492 lots to 360,770 lots.

 

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

 

Analysts said soy products will track price movements on CBOT soy contracts as soymeal and soyoil are made from imported soy.

 

Friday's settlement prices for benchmark contracts in yuan a metric tonne and volume for all contracts in lots (One lot is equivalent to 10 tonnes):

                      

Contract          Settlement      Price         Change        Volume

Soy                 Jan 2010        3,536          Up  5          122,614

Corn               Jan 2010         1,621         Up  16         131,698

Soymeal          Jan 2010         2,799         Up  22      1,375,636

Palm Oil           Jan 2010         5,570         Up  28         788,510

Soyoil              Jan 2010         6,952         Up  30      1,350,298