(Reuters) – Chicago wheat edged higher on Thursday as the market took a breather after sliding more than 4 percent in the last two sessions on selling triggered by improved weather in the U.S. grain belt.
Corn rose 0.3 percent and soybeans gained 0.2 percent in early Asian trade.
FUNDAMENTALS
* U.S. wheat, corn and soybean futures fell sharply on Wednesday, with corn and soybeans falling back from multi-month highs, on a round of profit-taking following rallies earlier in the week.
* Some forecasts for showers in the parched U.S. Plains, which will provide relief to the developing wheat crop in those areas, weighed down the futures market.
* U.S. farmers booked sales on the cash market as corn prices topped $5 a bushel, which contributed to the weakness in futures prices.
* The decline in corn market was limited by cold soil in the U.S. Midwest that is likely to delay planting during the next few weeks.
* Cheaper soybean supplies from Brazil and Argentina have shifted demand from overseas buyers to those countries, easing pressure on the U.S. stocks situation. Traders also said some South American cargoes of soybeans were set to arrive in the United States during the weekend.
* U.S. Gulf grain basis offers for corn, soybeans and wheat were all lower on Wednesday as country movement before planting and better spring weather eased supply concerns, traders said.
MARKET NEWS
* The euro nursed modest losses early on Thursday, having come under pressure as the market turned cautious on expectations the European Central Bank may sound dovish following its policy review later in the day.
* U.S. crude slipped to trade just above $99 a barrel on Thursday, dropping for a fourth session, as an imminent rise in Libyan oil supply weighed on prices.
* The S&P 500 closed at another record high on Wednesday as signs of steady private-sector hiring suggested that the economy was slowly building momentum after a winter-related pullback.
