US soy futures rise to three-month high on Chinese output concerns

US soy futures rose to a three-month high on speculation that cold weather may curb planting in China, boosting demand from the world's largest consumer.

Soy for July delivery gained as much as 1% to US$10.20 a bushel, the highest price for the most-active contract on the CBOT since January 11. Soy traded at US$10.1675 a bushel at 11 a.m. London time.

According to analysts, soy will gain this week as cold, wet weather in China hurt production, boosting demand for supplies from the US, the world's largest exporter.

Forecasts of cold weather in China could mean that nation will need to buy more soy, analysts said, noting that US farmers may also be holding off sales on expectations that prices will keep rising.

China's northeastern Heilongjiang province, the country's biggest soy producer, may reduce planting by 7.9%, or 5.6 million mu (922,133 acres), to 65 million mu, the China National Grain and Oils Information Center said.

Meanwhile, corn for July delivery rose as much as 0.9% to US$3.6425 a bushel, before trading at US$3.64 a bushel.