CHICAGO: US wheat and corn futures climbed to one-week highs on Tuesday and soybeans also firmed on bargain-buying and short-covering after last week's declines, analysts said.
As of 12:05 p.m. CST (1805 GMT), Chicago Board of Trade March wheat futures were up 16 cents, about 4 percent, at $4.09-1/2 per bushel, after reaching $4.11, the contract's highest since Dec. 19.
March corn was up 7 cents at $3.52-3/4 a bushel and most-active March soybeans were up 18-1/4 cents at $10.15-3/4 a bushel.
"Sharp advances are being posted in the markets today as month-, quarter- and year-end short covering develops. Much of this is a simple correction from the losses that were posted last week," Karl Setzer, analyst with the MaxYield Cooperative in West Bend, Iowa, said in a note to clients.
Large speculators expanded their large net short positions in CBOT wheat and corn futures in the week to Dec. 20, US Commodity Futures Trading Commission data showed, leaving those markets vulnerable to bouts of short-covering.
Strong weekly export inspections data lent support. The US Department of Agriculture said 1.7 million tonnes of US soybeans were inspected for export in the latest week, toward the high end of trade expectations.
"Shipments to date (for soybeans) now exceed the seasonal pace needed to reach USDA's target by Aug. 31," INTL FCStone chief commodities economist Arlan Suderman said in a note.
Export inspections data for wheat topped trade expectations and corn inspections were at the high end of expectations.
Traders continue to monitor crop conditions in South America. Heavy rains that pelted parts of Argentina over the weekend did not reach the southeastern part of the bread-basket province of Buenos Aires, where dryness is threatening to dent soybean production, local farm weather experts said on Monday.
Argentina aims to increase farm production under President Mauricio Macri, who has implemented a slew of market-friendly reforms since taking office a year ago.
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