Soy, wheat rise on exports, positioning before US report

CHICAGO: US soybean futures jumped on Thursday on better-than-expected weekly exports and expectations the government will tighten its supply outlook in a monthly crop report.

Traders were buying back previously sold positions amid expectations the US Department of Agriculture, in a report on Friday, will cut its estimate for US inventories and its forecast for South American harvests.

"The shorts don't really want to be in the market going into the March report," said Mike Zuzolo, president of Global Commodity Analytics & Consulting.

Chicago Board of Trade March soybeans climbed 1.1 percent to $15.01 a bushel by 1 p.m. CST (1900 GMT). May soybeans gained 0.4 percent to $14.72-1/2 a bushel.

Traders were evening up positions in wheat the day after the most-active contract sustained its biggest one-day drop in nearly four months.

CBOT May wheat rose 0.7 percent to $6.88-1/4 a bushel, having closed down 3.2 percent on Wednesday. March wheat was up 0.2 percent at $6.77-3/4 after falling to its lowest level in more than eight months in earlier trading.

Corn stabilized the day after it recorded its biggest daily loss in almost six months. May corn was down 0.4 percent to $6.86 a bushel, having dropped 2.9 percent on Wednesday.

"We regard the rapid fall in wheat and corn prices as excessive and fundamentally unjustified," Commerzbank said in a note. "Tomorrow's USDA estimates are likely to show that available supply is still tight."