July 14, 2011

Soy futures on the Dalian Commodity Exchange closed higher Wednesday (Jul 13), tracking soy gains at the Chicago Board Of Trade.

The most actively traded May soy contract settled at RMB4,623 (US$711)/tonne, up 1%, the sharpest rally for benchmark contract in more than four months. July CBOT soy settled 1% higher Tuesday.

The USDA report on soy acreage Tuesday was neutral to the market, as it was in line with market expectations, analysts said.

The department revised downward its estimate for US soy output due to reduced harvested area, and also reduced its forecast of soy exports - mainly due to lower projected imports from China.

Meanwhile, stronger-than-expected China economic data released Wednesday helped investors shrug off concerns about the potential for a hard landing in the world's second-largest economy due to monetary tightening.

China's second-quarter gross domestic product rose 9.5% from a year earlier, the National Bureau of Statistics said Wednesday. Economists had expected the GDP to rise by 9.4%, according to reports.