CHICAGO: U.S. wheat and soybean futures fell for a second day on Wednesday as investors took money out of the market as they waited for hints of monetary policy from the Federal Reserve after its two-day meeting.
"There is a lot of high anxiety today ahead of the Federal Reserve not only giving their FOMC minutes but also Bernanke's press conference," said Mike Zuzolo, president of Global Commodity Analytics.
Corn futures also fell, but the declines were limited as rainy weather in the Midwest continues to frustrate farmers who were itching to plant corn.
Wheat led the way down, falling 2.7 percent and down 4.4 percent over the last two days.
The drop in wheat extended losses made during the overnight Globex session but soybeans and corn were faring better during
Chicago Board of Trade hours.
Market participants were treading cautiously ahead of Federal Reserve Chairman Ben Bernanke's first-ever news conference on Wednesday afternoon following the Federal Open Market Committee's regular two-day policy meeting.
The FOMC is expected to indicate it will pursue its $600 billion bond-buying program to its scheduled conclusion at the end of June.
It is also expected to reiterate that it will keep interest rates unusually low for "an extended period."
At 10:18 a.m. CDT (1518 GMT), CBOT May soft red winter wheat was down 21-1/2 cents at $7.89-3/4 a bushel. CBOT May soybeans, which also were in the midst of a two-day losing streak, were off 5 cents at $13.77-3/4 a bushel.
CBOT May corn was down 3-1/4 cents at $7.63 a bushel.
RAIN BOOSTS CROP PROSPECTS IN KANSAS
Some much-needed rainfall hit southern areas of Kansas on Tuesday night, and there were calls for more precipitation in
Drought stressed areas of the U.S. Plains during the next few days said Mike Palmerino, forecaster for Telvent DTN.
"It is not going to cure the problem but it will certainly help," Palmerino said.
"There is reason to be a little more optimistic here that we may see a little improvement in the overall crop conditions."
In the U.S. Midwest, more rain was seen during the next 10 days, providing little opportunity for farmers to make progress on corn planting, which is virtually stalled in many key production areas.
The planting delays have dashed the market's hopes of an early harvest giving some relief to the tight domestic stocks situation, providing a source of strength for old-crop corn futures this week as wheat and soybeans have fallen sharply.
European benchmark wheat futures in Paris fell on Wednesday as the prospect of rain in key wheat producers Germany and
France helped ease drought worries while a new rise in the euro made European grains less attractive on world markets.
Canada's farmers intend to plant more canola, all-wheat and oats than the trade expected, according to Statistics Canada's first report on 2011 crop plans, but wet farms have left seeding plans in doubt.
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