Chicago Board of Trade (CBOT) corn, wheat and soybeans closed all higher on Monday following the previous slump as funds added buying in grains, soybeans, despite improving weather and excessive supplies in cash markets.
Chicago corn led the gains as the most active corn contract for July delivery added 6.5 cents, or 1.66 percent, to close at 3.8175 US dollars per bushel. Soybean for July delivery gained 13.5 cents, or 1.36 percent, to close at 10.0975 dollars per bushel. July wheat delivery rose 3.75 cent, or 0.79 percent, to close at 4.7775 U.S. dollars per bushel.
Investors went bargain hunting in agricultural commodity markets on Monday after CBOT grains and soybeans closed sharply lower last Friday as improving weather and soybean production estimates from Argentina were higher than expected.
Traders reported notable fund related buying in corn, soybeans and soymeal, sent the prices higher. "Funds came at the market from the opening day trade bell with corn, soybeans and wheat all sharply higher at midday," said AgResource company, a Chicago-based agricultural research institute," Funds have shown demand in wheat, but at diminished purchase pace when compared to the summer row crops."
U.S. grains and soybeans also found support as the U.S. weekly export inspections released by the U.S. Department of Agriculture (USDA) on Monday showed that shipments of corn, soybean through the week ending April 7 were in line with trade expectations.
For their respective crop years to date, the U.S. corn shipments were down about 13.5 percent from a year ago, but the shortfall is over 3 percentage points lower compared to one month ago.
As for wheat, the U.S. exports fell by more than 13 percent from the previous year, and the drop is about 1 percent higher than one month earlier, while soybean shipments were down about 7 percent from last year, according to the USDA.