Monday: China soy futures rebound on CBOT rise, commodities rally
Soy futures rose on the Dalian Commodity Exchange Monday, buoyed by a surge on the Chicago Board of Trade during Asian trading and a general rebound in the commodities complex.
The benchmark May 2010 soy contract gained 2.3% to settle at RMB3,711 a metric tonne.
Today's rise was because of the rally in Chicago and among other commodities, but the overall outlook still depends on macroeconomic conditions, said Wang Xiaoguang of Galaxy Futures.
Reports of drought conditions in major crop-growing areas of China haven't affected market sentiment much, Wang said.
Soy futures last week were slipping even as drought conditions worsened.
Reports suggest that drought conditions are easing, though many areas are still under threat.
Though corn output this year may fall slightly due to the ongoing drought, increased planting acreage and government reserves of around 30 million tonnes of corn will buffer any price rise, said Wang Shiliang, an official with the Jilin Grains Center.
Soy futures on CBOT made gains during Asian trading hours, with nearby contracts up more than 26 cents per bushel at 0715 GMT.
Chicago soy had touched a week high Friday, when a rally in crude oil and the prospect of an early Midwest frost boosted prices.
Trading volume for all Dalian soy contracts rose to 253,250 lots from 144,744 lots Friday.
Open interest gained 2,398 lots to 299,476 lots.
Corn, soymeal, palm oil and soyoil futures all settled higher.
Monday's settlement prices in yuan a metric tonne for benchmark contracts and volume for all contracts in lots (One lot is equivalent to 10 tonnes):
Contract Settlement Price Change Volume
Soy May 2010 3,711 Up 84 253,250
Corn May 2010 1,741 Up 28 374,812
Soymeal May 2010 2,910 Up 77 1,435,994
Palm Oil May 2010 6,532 Up 184 638,994
Soyoil May 2010 7,564 Up 192 890,654
