China soy futures rise on possible purchases

Soy futures rose from a four-week low on speculation that China, the biggest global consumer, will increase purchases to produce more animal feed and cooking oil.

Imports may reach a record 14 million tonnes in the second quarter, the China National Grain & Oils Information Center (CNGOIC) said on April 28.

Soy futures for July delivery rose 6 cents, or 0.6%, to US$9.60 a bushel on the CBOT, the biggest gain since April 22. Earlier, the price touched US$9.485, the lowest level for a most-active contract since April 9.

Last week, the commodity fell 3.9%, the most since the end of January, as Greek-debt concerns drove most raw materials lower. Soy dropped 8.4% this year amid forecasts for record crops in Brazil and Argentina, the biggest exporters behind the US.

Meanwhile, prices also rose earlier on speculation that wet, cold weather may delay planting in the US Midwest and stunt development of planted crops.

Some fields from Nebraska to Illinois got as much as 1.7 inches of rain in the past 24 hours, according to reports. Parts of the central Midwest may get 5 more inches from another storm beginning Monday (May 10), followed by colder-than-normal temperatures, the company said in a report.

About 15% of the US crop was planted as of May 2, up from 5% a year earlier, the USDA said this week. The average over the previous five years was 8%. The soy crop in the US was valued at US$31.8 billion last year, second only to corn, government figures show.