Freezing weather this week in north-eastern China will reduce crop quality and output, after rains delayed planting, according to T-Storm Weather Inc. in Chicago. Last week, cold damaged oilseed plants in Canada. US exporters reported sales of 225,000 tonnes of soy to China for delivery before August 31, the USDA said.

 

"The fear of Chinese crop losses is driving the markets higher," said Gregg Hunt, a broker and market analyst at MF Global Holdings Ltd. in Chicago. China may be forced to import more soy from the US, the world's largest grower and shipper, Hunt said.

 

Soy futures for November delivery climbed 15.5 cents, or 1.4%, to close at US$10.845 a bushel at 1:15 p.m. on the Chicago Board of Trade. Earlier, the oilseed reached US$10.995, the highest level since June 2009. The price rose 3.7% last week, the most in two months.

 

Soy-oil futures for December delivery rose 0.75 cent, or 1.8%, to close at 43.05 cents a pound on the CBOT. Earlier, the price touched 43.3 cents, the highest level since August 16. The price has climbed 5.6% this year.

 

Speculative buying also increased after the dollar weakened and crude-oil prices rose, Hunt said.

 

Hedge-fund managers and other large speculators increased their net-long positions to a four-week high in Chicago soy futures and options in the week ended September 14, according to US Commodity Futures Trading Commission data.

 

Net-long positions, or the difference between bets on price gains and declines, rose 0.3% to 136,979 contracts.