US wheat slips from 3-week high, soybeans rise

LONDON: US wheat futures were lower on Tuesday, retreating from a three-week high touched in the previous session, as the market's focus remained on whether an expected pick-up in the pace of exports will materialise in the near future.

Corn prices also fell while soybean futures rose.

The Chicago Board Of Trade's most active wheat contract  was down 1.2 percent at $5.13-1/4 a bushel at 1327 GMT.

In the previous session, wheat futures closed 3.3 percent firmer and rose to their highest level since Oct. 20.

Dealers said potential quality problems in Argentina had enhanced expectations that U.S. and European Union wheat exports would rebound in the second half of the season.

There remained concern, however, about the current slow pace of shipments from the two exporters.

"As yet there is only a hope of higher exports: the hard data still show that EU soft wheat exports, on a cumulative basis since the start of the 2018/19 season, are still 24 percent down on the already disappointing previous year," Commerzbank said in a market note.

Some traders and analysts said fears over the crop in Argentina may also have been overblown.

December wheat futures on Paris-based Euronext were down 0.1 percent at 201.75 euros a tonne.

The most active CBOT corn futures slipped 0.6 percent to $3.69 a bushel, after ending 0.4 percent higher in the previous session.

Commonwealth Bank of Australia analyst Tobin Gorey said price momentum in corn was currently in neutral territory.

"Investors have likely cleared most of their short positions in futures by now. And with that the market is now down one important source of buying," he said in a market note.

The most active soybean futures were up 0.6 percent at $8.88-1/4 a bushel, having closed down 0.5 percent on Monday.

Dealers said the market was weighed down by rising U.S. stocks although the outlook could be transformed if trade conflict with top buyer China was resolved.

"Traders are cautious before the G-20 summit that will take place in Argentina by the end of this month and possible evolution in the trade conflict between the U.S. and China," French analysts Agritel said.