Soybeans hit a two-week top on rumors of Chinese buying interest and worries about declining Brazilian crop prospects, while corn followed the firm trend.
As of 12:49 p.m. CST (1849 GMT), Chicago Board of Trade March soft red winter wheat was up 6 cents at $5.12-3/4 a bushel. A day earlier, the contract dipped to $5.01-1/4, its lowest level since January 2018. When the contract failed to drop below psychological support at $5, buyers returned.
"It's more technical than fundamental today," said Terry Reilly, senior analyst with Futures International in Chicago.
Excessive moisture in Argentina's wheat belt remained a worry.
"Traders are still a little bit nervous about the Argentine crop quality, and also US wheat is getting a little more competitive," Reilly said.
A weaker dollar lent background support, making US grains more competitive globally, at a time when winter weather may be slowing shipments from top exporter Russia.
"US wheat became competitive over the holidays, inviting active buying to start the new calendar year," Arlan Suderman, chief commodities economist at INTL FCStone, said in a client note.
CBOT soybean and corn futures posted smaller advances. CBOT March soybeans were up 3 cents at $9.10 a bushel after reaching $9.13-1/2, its highest level since Dec. 20. CBOT March corn was up 3 cents at $3.78-3/4.
Soybeans ticked higher as the oilseed market assessed weather risks for Brazilian crops and sought evidence of more Chinese purchases of US supplies as part of a trade truce.
China last month resumed large purchases of US soybeans after Washington and Beijing agreed to a 90-day truce in a trade dispute that has brought tit-for-tat tariffs on goods including soybeans, the most valuable US agricultural export to China.
Chatter about further Chinese purchases has buoyed soy futures at the turn of the year.
However, a partial government shutdown in the United States has prompted the US Department of Agriculture (USDA) to suspend daily and weekly export sales reports, depriving traders of potential confirmation of further deals.
"Traders are trying to verify the rumors of Chinese soybean import interest from the US We don't see it reflected in the cash market," Reilly said.
The USDA will decide on Friday whether to delay a series of crop reports scheduled for release on Jan. 11.