Soybean futures rose to a one-month high at the Chicago Board on Monday as traders covered short positions after bearish pressure from outside markets eased. CBOT May soybeans settled up 6-3/4 cents at $9.68-1/2 a bushel. The daily peak of $9.75 was the highest price for front-month CBOT soybeans on a continuous basis since reaching $9.78-3/4 a bushel on February 23.
Wheat futures also gained as Commodity Futures Trading Commission data issued late last week showed that managed funds held a large short position in wheat, leaving the market susceptible to rallies despite a bleak fundamental picture. CBOT May wheat rose 2-3/4 cents to $4.86-1/2 a bushel.
"You are sitting with a market that is caught short," said Don Roose, analyst at US Commodities in West Des Moines, Iowa. "I think it is that, along with the fact that these outside markets were under a lot of pressure early and the weight has come off of that. We are getting rebalancing back to the upside here."
But the market had little momentum due to weak fundamentals surrounding agricultural commodities and prices for both wheat and soybeans closed well-off their intraday highs. Agriculture futures received a boost after the US dollar retreated from its highs. A firm dollar makes US commodities less attractive to overseas dollar.
The dollar index touched its highest since March 2 early on Monday as uncertainty over Greece's debt problems and a surprise rate hike by India encouraged buying of perceived safe havens. "The big fund short in wheat is getting a lot of attention so there's some short-covering there but wheat fundamentals are bearish," said Joe Bedore, CBOT floor manager for trade house FC Stone.
But wheat markets continue to capped by ample global supplies following large crops in both the northern and southern hemispheres. Relatively high prices for US wheat have limited demand for it on the export market as plentiful stocks are available from other countries.
Corn prices were not benefiting from the turn in the dollar and crude oil market as funds still held a net long position in CBOT corn despite adding 24,491 short positions in the market during the latest reporting week. Expectations for large corn plantings this year in the US Midwest overhang the market despite damp conditions that could cause delays in seeding this year's crop. CBOT May corn settled down 3-3/4 cents at $3.70-3/4 a bushel, a drop of 1 percent.
The US Agriculture Department was scheduled to release its annual prospective plantings report, which surveys farmers to gauge their acreage intentions, on March 31. "They are just following the outsides, the direction of the dollar and waiting for the planting numbers," said Paul Haugens, veteran cash and futures merchant and a vice president for Newedge USA.