US soy futures set for biggest gain on higher China demand

Soy futures in US headed for the biggest weekly gain in nine weeks in Chicago on speculation demand will rise as China boosts soyoil imports from the US after curbing shipments from Argentina.

Soy for July delivery traded 0.3% lower at US$9.90 a bushel in after-hours electronic trading on the CBOT at 2:23 p.m. Singapore time. Still, soy are set for a 3.9% gain, compared with the most-active contract last week. That will be the biggest weekly rise since February 12.

China plans to increase soyoil imports from the US after restricting shipments from Argentina, the Asian nation's biggest supplier, Brazilian Agriculture Minister Wagner Rossi said, after a meeting with a Chinese delegation.

Still, prices fell today as the Dollar Index, which tracks the value of the currency against counterparts of six major trading partners, gained for a second day as prospects Greece will struggle to rein in the euro region's widest budget deficit spurred demand for safer assets.

China is still processing requests for permits to ship in soyoil from Argentina, Yao Jian, spokesman for the Ministry of Commerce said. The government will improve management of the system for importing the commodity from Argentina and the two nations could resolve the dispute, said Yao.