SINGAPORE: Chicago soybean and corn futures gained ground on Monday, as short-covering and strong demand for US cargoes underpinned prices, with both markets recovering from several weeks of bleak performances. Wheat prices climbed for a fourth consecutive session.

The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.4% at $12.18-1/4 a bushel, as of 0240 GMT, and corn gained 0.1% at $4.46 a bushel. Wheat rose 0.3% to $5.94-3/4 a bushel.

The US Department of Agriculture (USDA) on Friday confirmed private sales of 297,000 metric tons of US soybeans to China, the first soybean sales announcement under its daily reporting rules since Dec. 19 and the first to the world’s top buyer of the oilseed since Dec. 15.

“Projections for large harvests in Argentina and Brazil continue to dampen market sentiment while the USDA’s latest WASDE report, published on Jan. 12, included a 1.1% upward revision from its December 2023 report to its forecast for world corn production in 2023/24, providing further fuel to market bears,” BMI research wrote in a note, referring to the corn market.

Traders continue to monitor crop conditions in South America after analysts slashed estimates for Brazil’s soybean crop due to earlier hot, dry weather. Drought fears have eased due to recent rains, though, and bumper harvests are expected elsewhere in South America such as Argentina.