(Reuters) – U.S. wheat futures edged higher on Monday, rebounding from losses of more than 1 percent in the previous session, as traders sought bargains, but forecasts of a bumper Australian crop capped gains.
Corn firmed, shrugging off news of a discovery of a rogue strain of genetically modified corn by China, while soybeans rebounded from losses of more than 1 percent.
Chicago Board of Trade March wheat rose 0.1 percent to $6.62-1/2 a bushel, having closed down 1 percent on Monday when the grain fell on profit taking after hitting a near one-month high in the overnight session.
“Wheat fell 1 percent last night, and we are seeing some correction today,” said Andrew Woodhouse, grains analyst at Advance Trading Australasia.
“The market is very much focused on the demand side of the equation, and U.S. wheat is competitive into markets like Egypt.”
Despite drawing support from bargain buying, analysts said gains were capped by a forecast for the third biggest crop on record in 2013/14 in Australia, the world’s second largest wheat exporter.
The Australian Bureau of Agriculture and Resource Economics and Sciences (ABARES) forecast wheat output of 26.213 million tonnes, up from its September estimate of 24.467 million tonnes, citing favourable weather across the west coast.
January soybeans also rebounded from losses, firming 0.4 percent to $13.26 a bushel, having closed down 1.1 percent in the previous session.
Soybeans fell on weaker-than-expected export figures and profit-taking after the oilseed hit a near three-month high on Monday.
The U.S. Agriculture Department said export inspections of soybeans were 52.623 million bushels, below market forecasts for 60 to 70 million bushels.
March corn firmed 0.2 percent to $4.25-1/2 a bushel, having closed unchanged in the previous session.
Corn firmed, despite news that China’s quarantine authorities have found an unapproved genetically modified variety of corn in more U.S. shipments, which may face rejection after one shipment was rejected for entry last month, traders said on Tuesday.
