US soy futures rise as global equity bolsters demand

Soy rose for a third straight session on increasing optimism that a growing global economy will boost demand for food, animal feed and fuel made from the oilseed.

Crude oil gained as much as 2.9% as the MSCI Emerging Markets Index reached a five-week high after India's economy improved. Edible-oil purchases by India, the biggest consumer, may be a record 10.1 million tonnes in the year ending October 30, the government said.

''Developing nations are growing very quickly and they are going through an expansion phase that will also increase demand for food,'' said Tim Hannagan, a grain-market analyst for PFG Best Inc., a brokerage in Chicago.

''The rally in crude oil also helps to boost demand'' for fuel made from crops and blended with diesel, Hannagan said.

Meanwhile, soy for May delivery rose 1 cent, or 0.1%, to US$9.635 a bushel on the CBOT. The most-active contract gained 5.1% in February, the first monthly increase since November, as US farmers slowed sales after prices fell to a four-month low early in the month.

Soy are the second-biggest US crop, behind corn, with a 2009 value of US$31.8 billion, government figures show.