CANBERRA: US corn futures fell for the first time in three sessions on Thursday as rains eased concerns about crops in a key region of the United States.

Wheat rose more than 1% as prices rebounded from a two-week low touched in the previous session, while soybeans fell.

The most-active corn futures on the Chicago Board Of Trade were down 0.5% at $5.49 a bushel by 0856 GMT, having gained 1.2% in the previous session when prices hit a six-day high of $5.55-3/4 a bushel.

Traders said the market was in a holding pattern as they awaited signs of the impact of recent rains across the US Midwest.

"We know the crops have been damaged, we saw that in the US Department of Agriculture report earlier this week, but we need to see what impact the better weather will have on the supply picture," said a Melbourne-based grains trader who declined to be named as he is not authorised to talk to the media.

The US Department of Agriculture reported on Monday a weekly decline in crop conditions as severely hot weather was forecast for the heart of the Midwest crop belt.

The most-active wheat futures were up 1.2% at $7.34-1/4 a bushel, having closed down 0.9% on Wednesday when prices hit a two-week low of $7.18-1/2 a bushel.

The most-active soybean futures were down 0.4% at $13.27-1/2 a bushel, having closed little changed on Wednesday.

The market was watching closely for any signs of supply disruptions in South America, traders said.

Argentina said on Wednesday it had formed a new government agency to manage dredging operations needed to ensure navigation of the Parana River, which carries about 80% of the country's grains exports from the Pampas farm belt out to sea.