US wheat futures rose on Friday on optimism about US export prospects as a Russian plan to cap grain exports for the rest of the season shifted attention back to potential supply tensions during the coronavirus pandemic.
However, futures pared gains on profit-taking ahead of the weekend and worries that the rally would make US supplies less attractive.
Soyabean futures were modestly higher. But corn futures declined on prospects for further reductions in the production of corn-based ethanol, and expectations for a jump in US corn plantings this spring compared to last year.
As of 12:50 p.m. CDT (1750 GMT), Chicago Board of Trade May wheat futures were up 2-3/4 cents at $5.71-3/4 per bushel. May soyabeans were up 2 cents at $8.82-1/4 a bushel while May corn was down 2-1/2 cents at $3.46-1/4 a bushel.
CBOT May wheat pared gains after surging to $5.87 a bushel, its highest in two months, on news that Russia's Agriculture Ministry proposed a grain export quota of 7 million tonnes for April-June, in a bid to protect domestic supply.
Agricultural markets have been nervously monitoring steps towards export limits on some crops to protect domestic markets, with top wheat exporter Russia a particular focus.
Wheat futures drew support earlier this week as panic buying of food staples during the coronavirus crisis fuelled milling demand and spurred speculative buying. Traders have been trying to gauge how long the demand will last.
Analysts surveyed by Reuters on average expected the government to project US corn seedings at 94.3 million acres, up from 89.7 million in 2019, and soyabeans plantings at 84.9 million acres, up from 76.1 million last year, when poor weather curbed acreage of both crops.