US soy futures rise as stockpiles may decline to six-year low

Soy rose on speculation that the government this week will cut its estimate of US inventories on hand before this year's harvest, signaling stronger demand for the oilseed.

Inventories on June 1 probably slipped to 577 million bushels, down from 596 million a year earlier and the smallest total since 2004, said Anne Frick, a senior commodity analyst for Prudential Bache Commodities LLC. US demand for soy-based animal feed may increase the next three months as chicken output gains and livestock prices remain high, she said.

Soy futures for July delivery rose 3.25 cents, or 0.3%, to US$9.3825 a bushel at 11:16 a.m. on the CBOT. Before today, the price dropped 11% this year as Argentina and Brazil, the biggest growers after the US, harvested record crops.

Soybean-meal futures for July delivery rose US$3.40, or 1.2%, to US$280.60 for 2,000 pounds (907 kilograms) on the CBOT. Before today, the most-active futures fell 9.4% this year.

The soy crop in the US was valued at US$31.8 billion last year, second only to corn at US$48.6 billion, government figures show.