A round of short-covering by investors supported soybean and wheat futures on Monday despite bearish supply fundamentals for both commodities. The combination of a bleak technical picture and rising supply levels pushed corn prices to a two-week low. But managed investment funds held a net short position in both soybeans and wheat, leaving them prone to rallies despite abundant global supplies. The strength in soybeans came despite expectations for bumper crops in soy-producing countries such as Argentina and Brazil. The ongoing harvest in those areas will likely weigh on soy prices in the coming weeks.
Corn futures fell as traders focused on the bearish technical picture despite concerns that wet weather around the U.S. Midwest could cause delays to seeding this year's crop. Rains forecast this week may cause flooding in fields that have already been saturated by melting snow. While traders are mostly expecting little change to the balance sheet in the report, the USDA's March crop revision is unusual, and the uncertainty is underpinning the market, analysts say.
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