Wheat edges lower, but adverse US weather stems losses

SYDNEY: US wheat futures edged lower on Thursday, falling after posting gains of more than 1 percent in the previous session, though the drop was capped amid ongoing concerns about potential crop losses from recent cold weather across the United States.

Soybeans edged down, retreating from a near two-week high touched in the previous session, while corn fell.

The most active wheat futures on the Chicago Board Of Trade were down 0.2 percent at $4.27-1/4 a bushel by 0335 GMT, having closed up 1.4 percent on Wednesday.

Despite the drop, traders said prices remain supported by concerns for potential yield losses as cold weather lingers across the US Plains.

"Activity is light and we are seeing some squaring after last night, though losses are limited by the potential adverse weather in the States," said one Melbourne-based trader, who declined to be named as he is not authorised to talk to the media.

Investment funds were holding a near record net short position in US wheat futures and had sizeable net shorts in corn and soybeans, according to regulatory data released last week.

The most active corn futures fell 0.1 percent to $3.53-1/4 a bushel, having gained 0.3 percent in the previous session.

The most active soybean futures were down 0.2 percent to $9.65-1/4 a bushel, having closed down 0.3 percent on Wednesday after earlier hitting a high of $9.76 a bushel - the highest since Dec. 14.

Soybeans continues to draw support amid fears dry weather across some parts of Argentina may curtail production.

In other news, an explosion at a port operated by Chinese export company COFCO in Argentina's Rosario grains hub left one person dead and others injured, local authorities said. It was unclear how the incident would impact operations at the port.