Yesterday, corn, wheat and soybeans increased in Chicago on buying by investors after prices dropped on a U. S. Government report that revealed bigger-than-expected inventories and surplus supply.

Investors purchased futures after prices came down overnight. Tetsu Emori, a Commodity Fund Manager at Astmax Co., said on phone from Tokyo, "Fundamentals remain negative" and gains might be short-lived as declining oil prices are clouding market sentiment".

Corn futures for May delivery surged 0.7% to $3.475 a heap on the Chicago Board of Trade at noon Paris time, paring an increase of as much as 1.2%. Yesterday, the grain fell $3.4425, the lowest level since Oct. 6, and has dropped 16% this year.

Ben Barber, a futures adviser at Bell Commodities Ltd., said, "We haven't seen fundamental support that made prices rally today after being oversold last night".

He said that surplus supply will continue to weigh on grain markets, and prices might move back at a later stage.

Wheat futures for May delivery increased 1.3% to $4.565 a bushel, paring a profit of 1.6%, while the grain reached a five-month low of $4.50 yesterday.

In Chicago, soybeans for May delivery gained 0.5% to $9.455 a bushel after sliding 3.4% yesterday.