Wheat lifted on spring planting concerns

CHICAGO: Chicago wheat futures gained on Wednesday, following the Minneapolis Grain Exchange's hard red spring wheat higher on concerns that dryness across the U.S. Great Plains could impact spring wheat plantings.

Chicago corn gained ahead of the U.S. Department of Agriculture's monthly supply and demand report on Friday that is expected to show strong exports further drawing down corn stockpiles. Soybeans slid as South American harvest progresses.

The most-active wheat contract on the Chicago Board of Trade was 1-1/4 cents higher at $6.16-3/4 per bushel as of 12:10 p.m. (1710 GMT), while MGEX May spring wheat gained 11-3/4 cents to $6.22-3/4 per bushel.

CBOT soybeans fell 10 cents to $14.08-3/4 per bushel, while CBOT corn added 5 cents to $5.59-1/4 per bushel.

Spring wheat planting across the upper Great plains in the United States and the Canadian prairie has been hampered by extreme dryness that could negatively impact yields, said Brian Hoops, senior market analyst at Midwest Market Solutions, noting that some farmers could move away from wheat seedings.

"They could prolong planting decisions and go to soybeans," he said. "but they need some rain."

Meanwhile, corn and soybeans struggled to find direction as traders watch for the USDA to adjust grain usage in its monthly supply and demand assessment.

The agency may wait to see if grain exports catch up with recent sales before reducing stocks, said Joe Vaclavik, president of Standard Grain.

"We've still got a lot of shipping to do, in terms of corn, if we're going to get anywhere near these targets," he said.

Brazil's soybean harvest is poised for a record yield, pressuring the U.S. oilseed market despite rain delays.

Meanwhile, U.S. corn markets rose on delays in Brazil's second-crop corn planting that could potentially trim yields by an estimated 3.6% this year, Agroconsult said.