SINGAPORE/PARIS: Chicago wheat and corn futures lost ground on Wednesday as the market took a breather after seeing strong gains driven by short-covering and improved demand for US cargoes.
Soybeans slid for a third consecutive session as forecasts of rain in Argentina's key growing regions weighed on prices.
The most-active wheat contract on the Chicago Board of Trade had fallen 0.9 percent to $4.13-3/4 a bushel by 1150 GMT, having closed marginally higher on Tuesday, while corn was down 0.4 percent at $3.59-1/2 a bushel, after climbing to a five-month high on Tuesday at $3.64-3/4 a bushel.
Soybeans gave up 0.5 percent to $10.23-1/4 a bushel, having closed down 0.3 percent in the previous session.
"Export business for US wheat is improving and there are some issues with dryness in the US Plains which have been supportive for prices," said Kaname Gokon at brokerage Okato Shoji in Tokyo.
"Looking at other exporting nations like Russia and Australia, there is big production expected."
The wheat market had been supported by Egypt buying some US cargoes.
But early forecasts have projected another big Russian wheat harvest next year, and a first official reading of wheat sowings in France on Tuesday estimated the area would equal an 80-year high of 5.2 million hectares harvested this year.
Recent gains in corn and soybeans were hampered by ample supplies seen as more than able to handle recent demand spikes.
Forecasts of rain in dry areas of Argentina's crop-belt are taking out some of the weather premium built into the market.
Some support could also come from expectations of strong domestic demand in the United States.
The National Oilseed Processors Association (NOPA), the largest US trade group for the industry, is expected to report that its members crushed 162.568 million bushels of soybeans in November, up 4.1 percent from a year earlier, based on the average of estimates given by six analysts.
Investors were generally in a cautious mood ahead of a two-day US Federal Reserve meeting that is widely expected to conclude with a decision to raise interest rates.
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