US soy futures rise on lower crop output estimates in South America

US soy futures rose on Tuesday (Apr 7) as lower crop output estimates in South America continued to support the market, but renewed concerns over the global economy limited gains.

Analyst Toby Hassall said there is still uncertainty about the size of the South American crop.

The Buenos Aires grains exchange on Friday (Apr 3) cut its estimate for Argentina's 2008-09 soy output to 39.4 million tonnes from 41.2 million, while the Paraguay government forecast the country's soy crop at 4.15 million tonnes, down almost 40 percent from last year.

Chicago Board of Trade May soy rose 4-1/4 cents to US$9.98-1/4 a bushel, but the market was below a near two-month high of US$10.09 reached on Monday (Apr 6).

Asian stocks slipped, snuffing a five-day rally as uncertainty about US banks pushed dealers to take profits on recent gains, while investors' reduced willingness to take risks lifted the US dollar and yen.