Grains eased on Wednesday as forecasts of rain for parched soya and corn crops in Brazil and Argentina stalled the recent rally and investors took profits. US wheat was also weighed down by snowfall in the US Plains that has added critical moisture for the winter crop.
Soyabeans have settled higher four straight sessions, while corn and wheat have run up three consecutive gains. "We've had three up days on the same news (about dry South America conditions)," said Karl Setzer, market analyst at MaxYield Co-operative in West Bend, Iowa. "So today we're back-pedalling."
Chicago Board of Trade March corn slipped 2-1/2 cents, or 0.4 percent, to $6.04-1/2 a bushel by 9:59 am CST (1559 GMT) after hitting a three-week high on Tuesday. Rain is expected Wednesday night in Argentina, favouring the north-eastern half of the crop belt, said Joel Widenor, meteorologist with the Commodity Weather Group. Chicago January soyabeans were down 1-3/4 cents, or 0.2 percent, at $11.42-3/4 a bushel after touching a nearly four-week top a day earlier. March wheat lost 5 cents, or 0.8 percent, at $6.02-3/4 a bushel on profit-taking after a two-week high and with beneficial moisture improving prospects for the US southern Plains winter wheat crop.