Wheat eases then bounces before Bernanke speech

CHICAGO: US wheat was volatile on Thursday turning up after falling in initial trade in a reversal from 2-month highs on liquidation ahead of a key speech on Friday by Federal Reserve chairman Ben Bernanke.

Corn was retreating from contract highs and soybeans backed down from 6-week highs with each market influenced by nervous selling tied to concerns about the global economy.

At 9:54 a.m. CDT (1454 GMT), CBOT September wheat was up 2 cents at $7.51-1/4, new-crop December corn was down 2-1/2 at $7.40-1/2 and new-crop November soybeans were down 5-1/2 cents at $13.88.

News that Egypt bypassed the United States and bought wheat from Russia and Romania added pressure as did news of a better crop in Canada and optimism about Australia's crop limited gains in the wheat market.

Grains and soy were influenced by nervous selling of stocks, gold and crude oil before the Fed's Bernanke addresses central bankers an an annual symposium on Friday in Jackson Hole, Wyoming.

"Anything he says is important and I guess the market isn't expecting much from him tomorrow," said Mario Balletto, analyst for Citigroup.

"Crude oil is down which isn't helping any. there is liquidation and profit-taking."

Gold hit a record high early in the week then plunged on Wednesday and selling continued on Thursday.

"Gold is just coming unglued, there are a lot of margin calls so everyone is looking at that and standing aside," a Chicago Board of Trade grains trader said.

Fundamentals for corn remain bullish with tight supplies and expectations of lower yields in the United States.

"I guess people are on the sidelines today as everyone is cautious before Bernanke's speech," said Lynette Tan, an analyst with Phillip Futures in Singapore.

Copyright Reuters, 2011