Chicago agricultural commodities close higher

Chicago Board of Trade (CBOT) grains futures close higher on Monday with soybean futures rebounding due partly to signs of continued strong demand for the crop.

The most active corn contract for March delivery rose 12 cents, or 1.39 percent, to 3.5925 dollars per bushel. March wheat delivery added 4 cents, or 0.99 percent, to 4.0825 dollars per bushel. January soybeans rose 16 cents, or 1.56 percent, to 10.435 dollars per bushel.

Soybean prices recovered after falling for much of last week following an announcement by the U.S. Department of Agriculture that private exporters had sold 426,000 tonnes of soybeans for delivery to China.

The sale comes at a time when world buyers often start shifting soybean purchases to South America, and the evidence of ongoing demand boosted optimism that robust exports this year will help chew through ample domestic stockpiles of the oilseeds.

Forecasts for continued dry weather in Argentina bolstered the corn market, as a lack of precipitation there could also dampen the country's grain production. Informa however forecast Argentina's corn output at 36.5 million tonnes, which is one million tons higher than its latest estimate.

A weaker U.S. dollar and stronger crude oil prices also helped lift the corn market. Prices for the grain closed up for a second consecutive session.

Wheat prices ticked higher, buoyed by a softer U.S. dollar and short covering by investors who are holding a large net-bearish position in the market. But analysts said huge world grain inventories limited wheat's gains. Enditem