CHICAGO: Battered grain markets rebounded from multi-month lows on Monday due to bargain hunting, with corn posting marginal gains near midday after it dropped to a 9-1/2-month low earlier.
Soybeans also rebounded higher after setting their lowest prices in nearly a year and wheat rallied more than 1 percent as grain markets joined gold in posting gains after commodities sustained their worst quarter in year.
Corn is stabilizing after falling in September for its worst month in 15 years. Corn has tumbled nearly 30 percent from the record high set just 3-1/2 months ago as the soaring prices cut demand.
Wheat turned up after crumbling to a three-month low even as equities slipped more after sustaining their worst quarter since 2008 on concerns over Greece's teetering finances.
At 12:27 p.m. CDT (1727 GMT), CBOT corn for December delivery was up 2-1/4 cents per bushel at $5.94-3/4, November soy was up 6-1/2 at $11.85-1/2 and December wheat was up 7-3/4 at $6.17.
The bargain buying helped ward off early pressure on each market from pristine harvest weather in the United States as farmers gather corn and soybean crops. The excellent conditions are expected to continue.
"Near perfect harvest weather for the next week or even 10 days, about as perfect as one could order up," said John Dee, meteorologist for Global Weather Monitoring.
Dee said dry conditions and seasonal temperatures would allow US farmers to make rapid progress harvesting the 2011 corn and soybean crops.
The US Department of Agriculture late on Monday will release its updated weekly crop progress report.
CBOT soft red winter wheat also turned up on bargain buying after coming under pressure earlier from an outlook for rainfall in the drought-stricken US Plains hard red winter wheat growing region.
Kansas City Board of Trade (KCBT) hard red winter wheat remained lower on the outlook for better crop seeding and growing weather.
At 12:32 p.m. CDT (1732 GMT), KCBT December HRW wheat was down 2-1/4 cents at $7.01-3/4 cents per bushel and Minneapolis Grain Exchange (MGEX) December spring wheat was down 7-1/2 cents at $8.84-3/4.
Dee said by the end of the week the US Plains hard red winter wheat region should see beneficial rain of 0.30 inch to 0.80 inch with up to 1.00 inch in some areas.
"It won't be a drought-ending rain but some of the driest areas where it's most needed in the west will get some rain," he said.
Roughly 70 percent of the US Plains wheat and cattle grazing region will receive the moisture, according to Dee.
Copyright Reuters, 2011
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