July 14, 2011
Thursday: China soy futures climb further on CBOT corn support
Soy futures on the Dalian Commodity Exchange extended their gains into a second day Thursday (Jul 14) in a broad-based rally, tracking overnight CBOT counterparts on spillover support from corn due to worries that hot weather may damage crops.
The most actively traded May soy contract settled at RMB4,664 (US$723)/tonne, up 0.9%. July CBOT soy closed up 1.5% Wednesday, led by a 4.3% rise in corn.
Commodity markets also got a lift from a weak dollar after US Federal Reserve chairman Ben Bernanke said that the central bank is considering further economic stimulus.
Prices of soy complex are likely to rise, as investors watch weather in the US, the state-backed China National Grain & Oils Information Centre said in a note. The world's largest soy producer estimated a decline in this year's acreage.
Soymeal led the soy complex rally after the central government said Wednesday said it would provide subsidies to boost pig production and resume a RMB2.5-billion (US$388-million) investment programme to support large-scale pig farms. Soymeal is widely used as pig feed.