Chicago Board of Trade (CBOT) wheat advanced Monday on short covering tied to concerns that Russia might reduce export. Soybeans also settled higher whereas corn fell slightly.
The most active corn contract for March delivery lost 0.5 cent, or 0.14 percent, to settle at 3.6975 U.S. dollars per bushel. March wheat delivery added 6 cents, or 1.26 percent, to close at 4. 815 dollars per bushel. March soybeans rose 4 cents, or 0.46 percent, to close at 8.805 dollars per bushel.
Analysts said the news about the Russia reducing its wheat export has prompted short covering on the wheat market, supporting wheat futures higher on Monday. The Interfax news agency reported on Monday that Russia's Agriculture Ministry is considering tightening restrictions on grain exports for the period until grain from the new harvest hits the market. It added that the issue of changing the size of the export duty on wheat was discussed at a meeting held Friday by Deputy Agriculture Minister Sergei Levin. The frigid weekend weather in Russia, Ukraine and North of China has also boosted concerns that cold temperature may damage winter wheat.
As for soybeans, some analyst said the dryer weather in Argentina exerted some support to soybeans. Corn, however, retreaded from one-month high on technical selling. Corn advanced some 2 percent last week.
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