Soybeans rebound on short covering

SINGAPORE — Chicago soybeans rose on Monday, with the market climbing to its highest levels in almost three weeks on short covering, although expectations of ample South American supplies are likely to keep a lid on prices.

Corn fell for the first time in four sessions, while wheat retreated from strong gains seen in the previous session.

The most active soybean contract on the Chicago Board of Trade (CBoT) was up 0.3% at $11.87-3/4 a bushel, as of 0020 GMT. Earlier in the session, the contract climbed to its highest since Feb. 20 at $11.89 a bushel.

Corn lost 0.3% to $4.38-1/2 a bushel and wheat dipped 0.1% to $5.37 a bushel.

The US Department of Agriculture (USDA) slightly lowered its forecast for Brazil’s soybean crop further on Friday, but its outlook was above many private estimates.

The USDA pegged Brazil’s harvest at 155 million metric tons, compared with its February estimate of 156 million and analysts’ expectations for 152.28 million.

The agency said harvest results in the state of Parana and poor weather conditions in São Paulo were offset by favorable conditions in other areas.

For wheat, the USDA in its monthly report lowered its forecast of 2023/2024 US wheat exports to 710 million bushels, from 725 million bushels previously.

Hefty global grain supplies and strong competition for export business dragged down corn and soybean prices to multi-year low late last month. Large speculators increased their net short position in CBoT corn futures in the week ended March 5, regulatory data released on Friday showed.

The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBoT wheat and increased their net short position in soybeans.

Money managers lifted their net short position in CBoT soybean futures and options to a record 171,999 contracts from 160,653 a week earlier. That replaced the prior all-time net short of 168,835 contracts from May 2019.

In news, the United Nations food agency’s world price index fell in February for a seventh consecutive month as lower prices for all major cereals more than offset the rising price of sugar and meat.