US soy futures rise as import controls may favour crops

Soy rose for a second day in Chicago on speculation that stricter Chinese quality controls on soyoil imported from Argentina may prompt increased purchases of US supplies.

Soy for May delivery gained 0.2% to US$9.4675 a bushel on the CBOT at 11:48 a.m. Paris time.

Chinese soyoil traders may ''gradually'' delay or cancel imports from Argentina after the government toughened inspections, the China National Grain and Oils Information Centre said. Imports in 2009-10 may halve from a year ago to between 1.2 million and 1.4 million tonnes because of the measure, it said.

It is also speculated that China buyers may turn to US soy, Timothy Loh, marketing director at the American Soybean Association's Southeast Asia office in Singapore, said.

Processors may buy US soy and crush them locally to make up for smaller soyoil supplies from Argentina, Loh said. Diplomatic negotiations may yet allow Argentina to keep its share of the Chinese import market, he added.

Argentina remains positive that talks will end a blockade by China on soyoil imports that may cost the South American country as much as US$2 billion, Miguel Calvo, vice president of the Argentine Soybean Chain Association, said.

Meanwhile, May-delivery corn rose 0.4% to US$3.4775 a bushel, and wheat for July delivery dropped 0.9% to US$4.73 a bushel. Milling wheat for May delivery traded on NYSE Liffe in Paris fell 0.2% to EUR126 (US$168.67) a tonne, while November- delivery grain was unchanged at EUR130.75.