US soy futures rise as Chinese demand eats into world supplies

Soy futures rose for a third consecutive session after a US government report said China will increase imports of the oilseed over the next 17 months, limiting the growth in reserves swelled by the biggest-ever world crop.

China will buy a record 46 million tonnes from foreign sources in the year that ends October 1, up from 43.5 million tonnes forecast a month ago and 41.1 million tonnes a year earlier, the USDA said. Imports may increase to 49 million tonnes next year, the department said. China's purchases may total six million tonnes in June, an all-time high for any month, a state-owned researcher said.

Soy futures for July delivery increased 5 cents, or 0.5%, to US$9.66 a bushel on the CBOT. Earlier, the oilseed dropped 8.3% this year on forecasts for record global production.

Soy is the second-biggest US crop, valued at US$31.8 billion last year, behind corn at US$48.6 billion, government figures show.