CHICAGO: US soyabean and grain futures firmed on Wednesday in a short-covering rebound from prior session losses and as investors took positions ahead of a monthly US Department of Agriculture (USDA) supply and demand report on Thursday.
Wheat, which hit a two-month low this week, posted the strongest advance, while improving crop weather in South America kept a lid on gains in corn and soya.
"We're seeing some short covering ahead of the report tomorrow," said Brian Hoops, president of Midwest Market Solutions.
"We should see some strength going into the report as we look for small ending stocks changes domestically and globally. We could see some production decreases in Argentina and Brazil as well," he said.
The report is slated for release on Thursday at 11:00 a.m. (1700 GMT).
Chicago Board of Trade March wheat futures were 11-1/2 cents higher at $5.81-1/2 a bushel at 11:43 a.m. CDT (1643 GMT). January soyabeans were up 11 cents at $11.56-3/4 a bushel while March corn rose 4-1/4 cents to $4.24 a bushel.
Improving crop weather in South America tempered concerns about tightening global corn and soyabean supplies following strong US export sales of both commodities. While soyabean sales have slowed in recent weeks, corn sales remain robust.
The USDA on Wednesday confirmed private sales of 257,071 tonnes of US corn to Mexico, the latest is a series of large purchases by major importers.
More rain is expected across Brazil and northern Argentina in the week ahead although southern Argentina may miss out, weather forecasts showed.
"South American weather continues to be favourable enough to keep crop worries from evolving into lower crop forecasts for now," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.