US soyabean, corn and wheat futures rallied early on Monday, rebounding from sharp losses on a round of bargain buying, traders said. "People are coming back from holiday and saying 'look at how hard things got hit' and maybe thinking that it was a little overdone," said A/C Trading Co President Jim Gerlach. Soyabeans posted the biggest gains, rising 2.6 percent and snapping a four-session losing streak. A flash sale of US Soyabeans to China added fuel to the rally.
Chicago Board of Trade soyabeans for March delivery were up 26-1/2 cents at $10.34 a bushel at 11:32 am CST (1732 GMT). Prices rallied through technical resistance at their 100-day moving average early in the trading day. Corn futures were up 8-1/4 cents at $4.04 a bushel. Both corn and soyabeans were receiving additional support from some forecasts for dry weather in key growing areas of Brazil. CBOT March wheat was 9-3/4 cents higher at $5.91 a bushel.
A cold snap across the United States raised concerns about damage to the dormant winter wheat crop, with the largest areas of concern in eastern Nebraska and northern Missouri. "The wheat market is starting the week off higher as traders are concerned about weather," INTL FCStone said in a note to clients. "Winter wheat growing areas are experiencing extreme cold temperatures in the US this week, but snow cover will help as the week progresses." Signs of export demand also helped bolster wheat prices. European traders said China bought about 120,000 tonnes of hard wheat in the past few days, deals that may have included US and Australian supplies.
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