PARIS/SINGAPORE: Chicago wheat edged higher on Tuesday in a technical recovery from a day-earlier slide, with traders watching to see if recent price lows will stir export demand.
Corn also steadied after a sharp fall on Monday, with the market still capped by the arrival of a bumper US harvest.
Soybeans rose as participants assessed rain forecasts in top exporter Brazil, where dry weather is threatening to cut yields.
March wheat on the Chicago Board of Trade (CBOT) was up 0.5% at $5.64 a bushel by 1116 GMT.
The contract ended down 2.8% on Monday after hitting a life-of contract low at $5.56-1/4. Beneficial rain for US wheat crops and tepid export demand have encouraged investors to continue to bet on weaker prices.
Large speculators increased their net short position in Chicago Board of Trade wheat and corn futures in the week to Nov. 21, regulatory data released on Monday showed. Commodity funds were also net sellers of Chicago Board of Trade corn, soybean and wheat futures contracts on Monday, traders said.
“Looking forward, hedge funds have room to buy but need to see bullish fundamental or non-fundamental catalysts come back into play,” Peak Trading Research said in a note on agriculture futures.
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