Wednesday: China soy futures settle higher, led by soyoil gains

 

 

Chinasoy soy futures traded on the Dalian Commodity Exchange settled higher Wednesday, led by the gains in soyoil counterparts.

 

The benchmark September 2010 soy contract settled 0.4% higher at RMB3,886 a metric tonne.

 

The contract opened in negative territory, and consolidated around Tuesday's settlement price until the early afternoon.

 

It broke through the consolidation level to rise as high as RMB3,916/tonne, its highest level so far this year.

 

"Stabilization in the equities market today helped to dispel the panic caused by a tumble in equities yesterday," said Feng Yu, an analyst with Chinatex Edible Oil Co.'s futures department.

 

China shares rebounded Wednesday, after a sharp fall in the previous session following a warning to banks to strictly comply with capital requirements.

 

Some analysts said China's loose monetary policy is likely to last at least through the first half of next year, boosting expectations that inflation will accelerate.

 

Trading volume of all soy contracts rose to 300,982 lots from 222,972 lots Tuesday.

 

Open interest rose 15,074 lots to 270,726 lots Wednesday.

 

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

 

As soyoil has broken out of a RMB6,600-RMB7,800/tonne trading range it has been in since early June, prices are likely to rise toward RMB8,500 by the end of the year, said Feng.

 

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

 

               Contract    Settlement  Price  Change     Volume

Soy         Sep 2010      3,886         Up     14        300,982

Corn        May 2010      1,777        Dn     3           76,458

Soymeal  Sep 2010      2,979         Up     3        1,932,518

Palm Oil   Sep 2010      6,710         Up     64         256,912

Soyoil      Sep 2010      7,810         Up     56       1,232,204