December 31, 2009


Thursday: China soy futures up, led by palm oil rally on FTA launch



The agricultural complex rose on the Dalian Commodity Exchange Thursday, led by palm oil futures as the market anticipates the launch of a free-trade area between China and Southeast Asia.


The benchmark September palm oil contract rose 1.8% to RMB7,186 a metric tonne.


The benchmark September soy contract settled 0.3% higher at RMB4,026/tonne.


"There's optimism in the market on this last day of the year," said Li Xiaoli of Beite Futures.


China is set to benefit from Friday's launch of the free trade area with the Association of Southeast Asian Nations, as it is dependent on Malaysia and Indonesia for the bulk of its palm oil imports.


Chicago Board of Trade soy futures finished weaker Wednesday amid slow and thin trade, but recovered during Asian trading hours.


Trading volume on the DCE for all soy contracts fell to 239,966 lots from 200,074 lots Wednesday.


Open interest fell 4,808 lots to 339,308 lots.


Corn, soyoil and soymeal futures also rose Thursday.


Thursday'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         Sep 2010      4,026        Up    13      239,966

Corn       Sep 2010      1,870        Up     2        51,670

Soymeal  Sep 2010      3,009        Up    18     1,188,348

Palm Oil   Sep 2010      7,186        Up   126     911,350

Soyoil      Sep 2010      7,918        Up    56     936,700