(Reuters) – Chicago corn eased from a three-week high on Wednesday and wheat dipped, as grain markets took a breather after rallying in the previous session on global supply concerns sparked by poor U.S. crop weather.
Wheat faced technical resistance while the market shrugged off the political crisis in Ukraine.
Markets had risen on Tuesday as excessive rain delayed corn planting in the U.S. Midwest, while dry weather in the U.S. Plains is likely to curb yields of hard red winter wheat.
“We have seen some very impressive gains in wheat, but the reality is with prices where they are now combined with a very long speculative position – we need fresh bullish news to fuel the fire,”
Commonwealth Bank of Australia commodities strategist Luke Mathews said.
Chicago Board of Trade July corn fell 0.6 percent to $5.18 a bushel by 1043 GMT, having gained 1.6 percent in the previous session when it hit $5.22, the highest since April 9.
Chicago July wheat retreated from a two-week high, falling 0.6 percent to $7.11-3/4 a bushel, having closed up 1 percent on Tuesday. Chicago July soybeans were down 0.3 percent at $15.12-1/2 a bushel.
“Chicago July wheat is weaker today partly because it is facing strong technical resistance at the $7.20 a bushel level, a point which the market has failed to cross repeatedly in past weeks,” Arnaud Saulais of Starsupply Commodity Brokers said. “I am not surprised to see a pullback in Chicago wheat today as the $7.20 level is approached as the resistance is strong.” “I think we are seeing some profit-taking in corn today after strong rises on Tuesday. The political situation in Ukraine remains bad but it is not supporting the market today.”
Soybeans were pulled down by weakness in grains. “There is a risk-off approach today including soybeans as the market assesses the impact of U.S. weather,” a European trader said.
The market focus remains on U.S. weather in the key corn and soybean sowing period and the U.S. crop tour, a group of experts examining wheat plants in the U.S. grain belt and giving immediate assessments.
More rains moving across the U.S. Midwest and southern Delta region are expected to stall planting of corn, rice and soybeans until at least the weekend.
The U.S. Department of Agriculture said on Monday spring plantings of corn were behind schedule and below analyst expectations.
Crop scouts on the first day of the annual three-day tour of Kansas projected an average yield for hard red winter wheat in the northern portion of the state at 34.7 bushels per acre, down from 43.8 bushels a year ago. The tour’s five-year average for the same area is also 43.8 bushels per acre.
