SINGAPORE: Chicago soyabean futures rose further on Wednesday, with prices climbing to their highest in more than a week on support from short-covering, although expectations of record South American supplies limited the gains.

Wheat rose after closing almost unchanged on Tuesday, while corn ticked higher. “Managed funds are covering short positions, which is supporting soyabean prices,” said one trader in Singapore.

“On the fundamental front, the market is well supplied with South American harvest likely to gain momentum.”

Commodity funds were net buyers of CBOT soyabean, soyameal, soyaoil, corn and wheat futures contracts on Tuesday, traders said. The most-active soyabean contract on the Chicago Board of Trade (CBOT) added 0.2% to $12.41-1/4 a bushel, as of 0253 GMT, after climbing earlier in the session to its highest since Jan. 12 at $12.42-1/4 a bushel. Wheat rose 0.7% to $6.00-3/4 a bushel and corn gained 0.2% at $4.47-1/2 a bushel.

Gains in the soyabean market were curbed by expectations for a large South American harvest. While analysts have cut forecasts for Brazil’s soyabean crop due to drought late last year, improved rainfall could limit the losses. Argentina is on course for a bumper harvest this year.

For corn, attention was turning to planting for Brazil’s second annual crop. Forecasters expect lower production from Brazil’s second corn crop, reflecting a smaller planted area.