Light short-covering pushed corn higher on Monday, although prices stayed stuck in a 5-cent range and the market’s upside is seen as limited. Traders said the small bounce was both unsurprising and unimpressive, given the market’s sharp drop in January. They add that basis is strengthening due to farmers’ refusal to sell at the lower prices, which is preventing further sharp drops in futures prices.
Soybean futures closed at their lowest levels in nearly four months on Monday as a round of profit taking late in the trading day pushed prices lower amid expectations for a large crop in South America. Soybean futures fell 12 percent in January, while corn tumbled 14 percent during the month. Both markets have been reeling since the U.S. Department of Agriculture's Jan. 12 crop
reports showed last year's U.S. record-large corn and soy crops were even bigger than most analysts expected.
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