July 28, 2011

 

Tuesday: China soy futures fall as US weather improves
 

 

Soy futures on the Dalian Commodity Exchange ended marginally lower Tuesday (Jul 26) following weakness in overnight CBOT soy due to improving US crop weather.

 

The most actively traded May contract settled at RMB4,624 (US$718)/tonne, down RMB2 (US$0.30). August CBOT soy closed 1.2% down at 13.6550 a bushel Monday.

 

Rains over the weekend in the US Mideast provided some relief to soy crops, and more rain is likely this week. Meanwhile, persistent concerns over US debt talks continue to weigh on market sentiment.

 

Soy futures will mostly track the weather in the coming months as the USDA has forecast a sharp fall in soy acreage and weather conditions will determine output, analysts said.

 

In China, soymeal and corn futures have outperformed soy and soyoil recently due to high demand amid rapidly expanding hog production, encouraged by record pork prices. Edible oil prices remain weak due to the government's price caps.

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