Wheat firms, market awaits clarity on impact of recent Midwest rains

CANBERRA: US wheat futures rebounded on Wednesday from a 1.5% drop in the previous session, although gains were capped by easing concerns over crops in the key growing region of the US Midwest.

Soybeans edged up after dropping sharply on Tuesday, while corn also ticked higher.

The most active wheat futures on the Chicago Board of Trade were up 0.8% at $6.58 a bushel by 0531 GMT.

Traders said some market participants were squaring positions as they sought clarity over the impact of rains over the weekend.

"Rains across the Midwest will have helped crops, but to what extent nobody knows, and with such uncertainty, we are in a bit of a holding pattern," said one Melbourne-based grains trader, who declined to be named as he is not authorised to talk to media.

A US Department of Agriculture (USDA) report earlier this weak pegged the condition of crops below market forecasts, stoking concerns about global supplies.

The most active soybean futures were up 0.6% at $14.03-1/4 a bushel, having lost 1.5% in the previous session.

Soybeans were rated 60% good to excellent, in line with analyst expectations, but down 2 points from a week earlier. The USDA said the US soybean crop was 97% planted, on par with trade expectations.

The most active corn futures were up 0.3% at $6.61-1/2 a bushel, after closing flat on Tuesday.

The US corn crop was rated to be 65% in good-to-excellent shape as of Sunday, down 3 percentage points from a week earlier and a point lower than the average estimate in a Reuters survey of 11 analysts ahead of the report.