Corn increased on Monday boosted by a an increase of crude oil which revived speculation that demand for crop-based fuel such as ethanol will increase.

Crude oil increased by 2.9 percent to $108.21 a barrel.

Corn futures for May delivery increased by 3.4 percent, or 18.5 cents, to $5.6575 a bushel on the Chicago Board of Trade.

Corn futures increased by 36 percent last year boosted by an increase in demand for ethanol and livestock feed, poultry and dairy cows.

According to the Energy Department data, U.S. production of ethanol increased to 6.5 billion gallons, 33 percent higher than 2006.

Ethanol futures for May delivery increased by 1.7 percent, or 4 cents, to $2.368 a gallon in Chicago.

Corn prices were also boosted by speculations that China, the world's second-biggest grower of corn, will plant less corn.

China, the world's largest importer of soybeans, was forecasted to boost oil production by encouraging more soybeans to be imported following an increase of vegetable oil prices.

China imported 5.5 million tons of soybeans in the first two months of this year, 51 percent higher than last year in the same period.

Crude oil China