Chicago wheat rallies on technical buying, soybeans lower on sluggish demand

Chicago Board of Trade wheat jumped nearly 4 percent on Monday, rebounding from its lowest level in nearly three weeks on a round of short-covering, while soybeans settled lower on falling demand.

Wheat for July delivery gained 16.75 cents, or 3.51 percent, to close at 4.9375 U.S. dollars per bushel. July soybeans fell 8 cents, or 0.86 percent, to close at 9.26 dollars per bushel. The most active corn contract for July delivery added 0.75 cents, or 0. 21 percent, to close at 3.5225 dollars per bushel.

Wheat shed 7.42 percent last week due to favorable weather conditions, hovering around nearly three-week low. The fall in wheat prices spurred a fresh round of technical buying, sending wheat higher. Agresource, a Chicago-based Institute, said that funds have bought a net 7,000 contracts of wheat in the morning session.

Corn also rose following a surge in wheat. Meanwhile, falling export demand and accelerated planting pace pressurized soybeans, analysts said.

The U.S. Department of Agriculture (USDA) said Monday in its weekly report of export inspections that till the week ending May 28, the export of soybean fell to 73,190 metric tons, a sharp decrease from 302,193 metric tons of last week. The figure, the lowest since September of 2014, was below market forecasts.

The USDA said in another report that till week ending May 31 in 18 selected states, soybean planting advanced to 71 percent, up from 61 percent of previous week and 70 percent of 2010-2014 average. Endite