SINGAPORE: Chicago soybeans edged higher on Friday and were poised for their first weekly gain in a month, while corn was on track for its first weekly rise since mid-December, as short-covering supported prices.

Wheat lost ground, but the market was on track for its biggest weekly gain since early December.

“Managed funds have been trying to reduce their short positions in (the) Chicago market,” said one grains trader in Singapore.

“There are no issues on the supply front and demand is not that great, so the upside potential is limited.”

The most-active soybean contract on the Chicago Board of Trade (CBOT) added 0.3% at $12.26-1/2 a bushel, as of 0327 GMT, corn lost 0.3% to $4.50-1/2 a bushel and wheat gave up 0.4% to $6.09-3/4 a bushel.

For the week, soybeans have risen more than 1% after five weeks of losses, corn has gained 1.1%, the first rise since mid-December and wheat is up 2.8%, the biggest weekly jump since early December.

Commodities funds hold net short position in CBOT grains and oilseeds, leaving the markets prone to short-covering.

Expectations of ample supplies from South America and concerns over slowing demand drove soybean and corn futures to multi-year lows last week.

Soybeans hit over 1-week high on short-covering, LatAm supplies trim gains

The US Department of Agriculture (USDA) reported US soybean export sales in the latest week at 560,900 metric tons, below a range of trade expectations, underscoring stiff competition from top global supplier Brazil.

Argentina’s current soybean and corn harvests were upwardly revised on Thursday, as expected yields from both key grains crops benefited from more rainfall.

The Buenos Aires Grains Exchange now sees soybeans from the 2023/24 harvesting season at 52.5 million metric tons, or up about 1% compared with the previous forecast.

The exchange sees corn output from the same season at 56.5 million tons, up nearly 3% from the previous forecast.

Commodity funds were net sellers of CBOT soybean, soymeal, corn and soyoil futures contracts on Thursday and small net buyers of wheat, traders said.