Corn futures gained on expectations of a rebound in demand for US supplies, after dropping last week to their lowest level since early July. while wheat was firm on concerns that dry weather was hurting the US winter crop. Outside markets kept a lid on gains, said Rich Nelson, chief strategist with Allendale Inc. Stock markets traded slightly lower due to worries about the US fiscal cliff budget crisis, while the US dollar picked up strength.
Chicago January soybeans rose 9 cents, or 0.6 percent, to $14.39-3/4 a bushel. Last week, the contract closed down more than 4 percent, its steepest weekly decline since mid-November. The soybean market has been weighed down by signs of weakening demand from China, the world's top importer, which cancelled US cargoes, hoping for cheaper supplies from South America early next year. "It is a bit of a rebound from oversold levels after the market got spooked by news of Chinese buyers' cancelling cargoes," said Victor Thianpiriya, an agricultural strategist at ANZ in Singapore.