CHICAGO, March 4 (Reuters) - U.S. soybean and corn futures rose on Monday on bargain buying and short covering after hitting three-year lows recently, but plentiful supply from South America limited gains, analysts said.
Wheat also traded higher.
Commodity funds were covering short positions after recent declines in U.S. markets and ahead of a monthly U.S. Department of Agriculture supply and demand report on Friday, said Don Roose, president of U.S. Commodities. Traders will assess the USDA's latest estimates on corn and soy production in South America.
Question marks remain about how poor weather conditions in Brazil, the world's biggest soybean exporter, affected the size of the country's crop. The U.S. and Brazil compete for export sales to importers such as China.
“A big question is can the U.S. compete with Brazil – will China start to buy soy from the U.S.?” Roose said.
Chicago Board of Trade most-active soybeans rose 2-1/2 cents to $11.53-3/4 a bushel at 12:16 p.m. CST (1816 GMT) after hitting their lowest since November 2020 last week.
Corn rose 2-1/4 cents to $4.27 a bushel, after sliding to their lowest point last month since November 2020. Wheat rose 4-1/4 cents to $5.62 a bushel following Friday’s sharp falls.
Brazil's soybean harvest is 48% complete compared with 43% during the same period last year, agribusiness consultancy AgRural said on Monday.
Some analysts have downgraded Brazilian forecasts, but the crop is still hefty. Argentina expects a bumper soybean crop.
“For soybeans, Brazilian harvest and export pressure remain in place. As Brazilian exports reach their seasonal peak soon, it is difficult to see how the U.S. can compete,” said Matt Ammermann, StoneX commodity risk manager.
“World corn supplies are also looking large, and the question is whether Chicago corn will be able to hold the $4 level this week.”
In demand news, the USDA announced 126,000 metric tons of U.S. soymeal to unknown buyers and 110,000 metric tons of U.S. corn to Taiwan. (Reporting by Heather Schlitz in Chicago. Additional reporting by Michael Hogan in Hamburg, Peter Hobson in Canberra; Editing by Rashmi Aich, Sohini Goswami, Chizu Nomiyama and Jonathan Oatis)
