Wheat and corn retreat from highs, soybeans firm

HAMBURG: Chicago wheat and corn futures fell on Thursday, retreating from recent highs caused by concerns over US crop damage due to poor weather, while soybeans firmed.

"Wheat and corn are seeing a pullback today in some selling as profits are taken after their strong rises," said Matt Ammermann, commodity risk manager with INTL FCStone. "Soybeans are gaining support from a range of factors including hopes about negotiations in the US-China trade dispute."

The Chicago Board of Trade's most-active wheat contract was down 0.7 percent at $4.95-1/4 a bushel at 1215 GMT. Wheat rose 2.9 percent on Wednesday and earlier on Thursday hit $5.04-1/4 a bushel, its highest since March 7.

Corn fell 0.1 percent to $3.95 a bushel after hitting its highest since July on Wednesday. Soybeans rose 0.4 percent to $10.44-1/4 a bushel.

"The wheat market had got excited about dryness/freeze impacts in the US Plains and this was reflected by money flows and wheat has risen about 36 cents in just over two days," Ammermann said. "The weather outlook has not changed dramatically overnight but today the market is assessing whether these gains can hold."

"Corn has been following wheat recently. There has also been concern about poor weather hindering US plantings. But the market is taking a more relaxed view of the planting issue today," Ammermann said.

The US crop progress report on Monday said 5 percent of US corn was planted on April 22 against 15 percent the same time last year.

"US corn planting is likely to be on the slow side this year but as long as about 70 percent is planted by around May 15 all should be OK," he said.

"Farmers can plant with remarkable speed these days if they get decent weather so it is too early to write off this year's US corn harvest."

China's purchases of US soybeans have almost stopped following the trade dispute with the United States.

"Soybeans are underpinned by hopes are starting to rise that the US/China trade dispute could be resolved with negotiations set to start perhaps in the next week or so," Ammermann said. "This could mean a resumption of China's buying of US soybeans, although China's soybean purchases are currently mainly concentrated on Brazil."

"If US corn plantings speed up, farmers will in turn not turn to soybeans so much as a late replacement for corn."

A ship accident in an Argentine export port was also supportive as it raised hopes some business could be transferred to the United States.