GRAINS-Soybean, wheat edge higher on short-covering, rains
(Updates U.S. market activity to close)
By Michael Hirtzer
CHICAGO, Sept 27 (Reuters) - U.S. grain and oilseed futures were higher on Tuesday, with soybeans rebounding from an earlier five-month low on support from investor short-covering ahead of a U.S. Department of Agriculture quarterly stocks report due on Friday.
Rainfall delayed the U.S. corn and soybean harvests, while heavy precipitation could curb wheat output in Australia and reduce grain quality in Canada.
However, global supplies of cereal grains and edible oilseeds were abundant, likely limiting the upside potential in prices, traders and analysts said.
Chicago Board of Trade wheat futures posted the largest gains, with December wheat jumping 2 percent, or 8 cents, to $4.04 per bushel, while MGEX December spring wheat climbed 8-1/4 cents to $5.02-3/4 per bushel.
"Wheat overall is up on Australian wheat concerns and spring wheat is up on quality concerns after recent rain events in Canada," said Adam Knosalla, broker at Frontier Futures.
More showers were predicted later this week in eastern Australia after near-record rain earlier in September, and the excess moisture would likely add to crop loss in the part of country that typically produces high-protein wheat.
U.S. corn and soybean harvests were advancing slightly slower than average, USDA data showed late on Monday, prompting some investors to take profits on bearish bets. Continued...