Chicago soy futures rise on Chinese import speculation

Soy prices rose in Chicago, ending a six-session losing streak, on speculation that China may boost imports and on a forecast for adverse weather to slow planting in the country's northeast, potentially curbing output.

Soy for July delivery climbed 0.4% to US$9.4225 a bushel on the Chicago Board of Trade at 1:12 p.m. Paris time on May 20, paring an advance of as much as 1%. The streak of declines was the longest in 15 months.

The USDA may be underestimating China's soy demand in the year through September 30 even after raising the forecast to 46 million tonnes on May 11, said Robert Day, general manager for South China operations at Cargill Inc., the largest US agricultural company. The USDA has forecast imports of 49 million tonnes in 2010-11.

"We've seen the markets move higher, likely because of Chinese import buying" and weather concerns in parts of the country, Luke Mathews, a commodity strategist at Commonwealth Bank of Australia said.

Northeast China will get rain and cooler weather, slowing planting progress and crop development for corn, soy and spring-wheat, forecaster Telvent DTN Inc. said.

Corn for July delivery slipped 0.1% to US$3.59 a bushel. Wheat for delivery in the same month declined 0.3% to US$4.68 a bushel.

Milling wheat for November delivery traded on NYSE Liffe in Paris rose 0.7% to EUR142.50 (US$175.85) a tonne.