Soybeans, corn, wheat rise in bargain-hunting after losses

HAMBURG: Chicago soybeans, corn and wheat rose on Monday as bargain buying supported prices after last week's steep losses.

Also in focus were forecasts of hot weather in U.S. grain belts and estimates later this week of U.S. grain inventories and plantings.

Chicago Board of Trade most-active soybeans rose 1.0% to $12.83-1/2 a bushel at 1110 GMT, corn rose 0.6% to $5.22-1/2 a bushel. Wheat rose 1.7% to $6.52 a bushel.

Markets fell on Friday after a U.S. Supreme Court ruling bolstered attempts by small U.S. oil refineries seeking exemptions from laws requiring them to blend biofuels, which could hit demand for crop-based biofuels.

"There is some bargain-buying in corn, soybeans and wheat after Friday's drop as the U.S. Supreme Court's judgement on biofuel blending is assessed," said Matt Ammermann, StoneX commodity risk manager.

"There is also background support from forecasts of dry weather in the U.S. Midwest and the upcoming estimates of U.S. inventories and planted areas later this week."

"The markets slammed down after the court's judgement last week but the EPA (U.S. Environmental Protection Agency) must now make a detailed decision on biofuel blending."

"The Biden administration does have a strongly green agenda. We still do not know whether this judgement will mean a substantial reduction in biofuel usage or a more moderate cut/short term relief to help some refineries."

Traders are awaiting U.S. acreage and stocks data due on Wednesday from the U.S. Department of Agriculture. These reports have historically caused volatile price reaction.

"Hot weather is also in the forecasts for the U.S. Midwest," Ammermann said. "Although crops in parts of the Midwest are looking fine, we do need trend line yields throughout the whole of the Midwest and markets will react to forecasts of hot weather as July is the key pollination period for corn."