Soybean rallied on Monday in Chicago on speculation that demand from China will increase.

Soybeans for July delivery increased by 1.8 percent or 24.75 cents to $13.74 a bushel on the Chicago Board of Trade.

Soybean contract increased by 5.7 percent last week and gained 86 percent last year.

Edible oil consumption in China is always about 4 and 5 percent per year, and it is forecasted to increase this year as demand for palm and soybean oil increase.

There also speculations that China may increase state reserves of soybeans and vegetable oil ahead of the Olympic Games.

Corn for May delivery increased by 0.3 percent or 2 cents to $5.8625 a bushel in London.