* Corn, soybeans gain more ground on short-covering
* Wheat dips after climbing more than 6 pct in 2 sessions
(Adds comment, detail)
By Naveen Thukral
SINGAPORE, Oct 17 Chicago corn and soybean
futures rose for a third consecutive session on Monday, with
prices underpinned by short-covering and strong demand.
Wheat was little changed as the market took a breather after
climbing more than 6 percent in the last two sessions in an
The Chicago Board of Trade's most-active corn contract
had added 0.6 percent to $3.56-1/4 a bushel by 0157 GMT, having
gained 1.4 percent on Friday to its highest in nearly three
months at $3.58-3/4 a bushel.
Soybeans rose 0.6 percent to $9.67-3/4 a bushel and
wheat was unchanged at $4.21 a bushel.
"Investors still hold a very large short position (in the
corn market)", said Tobin Gorey, director of agricultural
strategy at Commonwealth Bank of Australia.
"Any further price strength today is likely to prompt
another wave of short covering."
Large speculators trimmed their net short position in CBOT
corn futures in the week to Oct. 11, regulatory data released on
The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that noncommercial
traders, a category that includes hedge funds, trimmed their net
short position in CBOT wheat and raised their net long position
There was additional support for the soybean market on
Friday from higher soyoil values.
U.S. corn export sales this season were off to their
strongest start in nearly a decade as low prices and limited
export competition have expanded U.S. market share after years
of ceding sales to suppliers like Brazil and Ukraine. Prices of
the grain almost halved over the past three years.
The wheat market has been driven higher by strong global
There were a spate of wheat purchases and tenders last week
from buyers including Syria, Egypt, Algeria and Saudi Arabia.
(Reporting by Naveen Thukral; Editing by Joseph Radford)