CHICAGO, Jan 9 (Reuters) - U.S. wheat futures firmed on Monday in a short-covering bounce from one-month lows last week as the dollar weakened and outside markets, including crude oil and equities, advanced.
Corn and soybeans were mixed as investors weighed weather-reduced production in some areas of South America against tepid demand for U.S. supplies.
Chicago Board of Trade March wheat was up 1-1/4 cents at $7.44-3/4 per bushel at 12:15 p.m. CST (1815 GMT). March soybeans gained 1 cent at $14.93-1/2 a bushel while March corn was up 1/2 cent at $6.54-1/2 a bushel.
Grain market volatility was limited as traders awaited Thursday's release of global crop supply-and-demand estimates from the U.S. Department of Agriculture (USDA). In the report, USDA is expected to cut its
corn and soy production
outlook for drought-hit Argentina but also raise its estimate of
U.S. grain and soybean supplies
.
"The question going into the report is whether the USDA will lower the South American production and supply numbers enough to offset weakening demand that the market has already built in," said Mike Zuzolo, president of Global Commodity Analytics.
The USDA on Monday reported weekly
grain export inspections
for corn, soybeans and wheat near the low end of a range of
trade estimates
. U.S. exports have struggled to compete in the global marketplace with cheaper South American supplies.
Grain traders are also monitoring developments in Brazil, where far-right supporters of former President Jair Bolsonaro stormed government buildings over the weekend. The Brazilian real weakened against the dollar on Monday, making the country's crop exports even more affordable than U.S. supplies on the global market. (Additional reporting by Michael Hogan in Hamburg and Naveen Thukral in Singapore; Editing by Rashmi Aich, Jane Merriman and Richard Chang)
