US corn and soyabean futures slipped on Wednesday, easing from more-than-two-year highs scaled in the previous session, but supply worries triggered by dry weather in Argentina continued to support prices. "There is some light profit-taking in the market today but not a lot can be read into it and the market atmosphere remains fundamentally supported," an analyst at one European bank said.
Wheat futures slipped marginally but remained near 5-month highs, supported by fresh demand from Egypt and Iraq this week and excessive rains hurting crops in Australia. "Soyabeans, corn and wheat should continue the bullish trend next year, but there could be some profit-taking at the end of the year," said Kazuhiko Saito, chief commodities analyst at Fujitomi Co in Tokyo.
"Fundamentals for all three markets remain strong, there is additional demand for wheat and production has decreased in Australia. For corn and soyabeans, there is dry weather in Argentina and south Brazil." Chicago Board of Trade March wheat fell 0.2 percent to $7.96 a bushel by 1225 GMT and March corn fell 0.1 percent to $6.22-1/4 a bushel. January Soyabeans lost 0.7 percent to $13.66 a bushel.
European wheat futures were mixed, with benchmark Paris January wheat falling 2 euros or 0.7 percent to 250.50 euros a tonne at 1225 GMT after being little changed for much of the morning. London January wheat was up 2.5 pounds or 1.2 percent at 200 pounds as the British market caught up with recent price rises in other countries.
Soyabean and corn futures are trading around their highest in more than 2 years on concerns over dry weather curbing supplies from Argentina, the world's leading exporter of corn and soyabeans. Hot and dry weather linked to the La Nina weather phenomenon threaten to curb corn and soya production in Argentina, where some corn crops are drying up as they enter a key growth stage, observers said.