(Reuters) – Chicago soybeans rose 1.7 percent on Monday on expectations of strong Chinese demand and concerns about the U.S. weather underpinning the market which slid in the last session after Britain voted to leave the European Union.
Corn rose one percent on Monday after last week suffering its biggest weekly decline in three years, while wheat edged higher.
The Chicago Board of Trade most-active soybean contract gained 1.7 percent to $10.96-3/4 a bushel by 0310 GMT and corn added 1 percent to $3.88-1/4 a bushel. Wheat was up 0.2 percent to $4.66 a bushel.
“Soybeans certainly have the tightest balance sheet when you look at corn, beans and wheat,” Rabobank senior grains analyst Graydon Chong said. “We see the weather driving that market and we have seen pretty strong Chinese demand.”
Corn lost more than 12 percent last week, its biggest weekly decline since June 2013 as improving weather across the U.S. Midwest prompted funds to liquidate their long positions.
Soybeans gave up 6 percent last week while wheat dropped 3.4 percent.
Investors in the grain markets will be closely watching a weekly crop progress report to be issued by the U.S. Department of Agriculture later on Monday.
Large speculators cut their net-long position in CBOT corn futures in the week to June 21, regulatory data released on Friday showed.
The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, increased their net-short position in CBOT wheat and cut their net-long position in soybeans.
