US soy futures advance on possible demand boost from China

US soy futures rose to a seven-week high on speculation a trade dispute between China and Argentina will persist, pushing the Asian nation to boost purchases of beans from the US to meet rising demand.

July-delivery soy rose as much as 0.5%, to US$9.805 a bushel in on the CBOT, the highest price for a most-active contract since February 23. It traded at US$9.775 a bushel at 2:24 p.m. Singapore time.

China stopped approving permits to import soyoil from Argentina, the world's biggest supplier of the edible oil, four executives familiar with the halt said last week. The move was taken after the Latin American nation took more cases of anti-dumping measures against Chinese imports, according to traders.

Soy imports by China, the world's biggest consumer, are forecast to climb to the highest ever for a single month in May after crushers increased buying, the China National Grain and Oils Information Center said. Imports may rise to as much as 5.5 million tonnes in May, according to reports.

Meanwhile, soy purchases by China, which accounts for more than half of the world imports of the oilseed, may rise to a record of about 45 million tonnes in the year ending September 30, according to analysts. That compares with an April 9 forecast by the USDA of 43.5 million tonnes.