Wheat firm in short-covering rebound

Corn futures were flat after shedding earlier gains that stemmed from light commercial buying and concerns that frigid weather in the northern Midwest could damage immature crops.

Soybeans slipped about 0.5 percent, pressured by sluggish demand and an approaching Midwest harvest.

Macroeconomic woes linked to the deepening debt crisis in the euro zone limited buying interest across grains markets on Wednesday.

"The market is feeling very ambivalent. The dollar remains rather mixed and economic questions in broader markets have many traders pushing to the sidelines and not buying as aggressively as they might otherwise," said Sterling Smith, analyst with Country Hedging.

Earlier, wheat climbed by about 1 percent on short covering following six straight days of declines that had dragged prices to a five-week low, but pressure from a burdensome global wheat supply and a dull US export pace weighed on the market.

Egypt, the world's top wheat importer, continued to favor Russian wheat, booking a total of 420,000 tonnes in its latest tenders for import in November and December.

Exporters offered no US wheat for a second consecutive tender by Egypt's government wheat buyer because US prices were deemed not competitive with cheaper Russian grain.

Chicago Board of Trade December wheat climbed 0.4 percent to $7.04-1/2 a bushel as of 12:10 p.m. CDT (1710 GMT) after hitting a five-week low on Tuesday.

Technical support around the $7 mark in December futures helped to underpin the market.

FROST THREAT

Broader economic worries also limited buying in corn and soybeans, although some concerns about a possible crop damaging frost in the northern US Plains and northern Midwest limited downward pressure.

Temperatures fell below freezing in eastern North Dakota and northwestern Minnesota Wednesday morning and the cold snap was expected to hit a broader area of the US Midwest on Thursday and Friday, a forecaster said.

"There's a lot of bearish sentiment out there that's weighing on the market right now. Demand is slow and people are becoming increasingly focused on that," said Mario Balletto, analyst with Citigroup.

"Some (corn) end-users are covering on the break with the freeze threat and that's stemming some of the liquidation that started yesterday," he said.

December corn futures on the Chicago Board of Trade rose 0.1 percent at $7.23-1/2 a bushel after earlier touching $7.16-1/2, the lowest for the contract since August 19.

CBOT November soybeans fell 0.5 percent to $13.84-1/4 after earlier trading down to $13.77-1/4, its lowest level since August 22.

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