Chicago wheat rose 1% on Thursday, taking a breather after a near four% decline in the past two days under pressure from large global stocks and bumper output from the U.S. winter crop. Corn gained nearly 1% after dropping to a two-week low in the previous session.
Soybeans where also higher after falling to a nearly-three month low on Wednesday. Chicago Board Of Trade's most-active wheat contract gained 1% at $4.17 a bushel by 1000 GMT. Corn rose 0.9% to $3.47-1/4, having lost 5.2% the last two days. Soybeans gained 1.1% to $10.20 a bushel.
"We are in a bearish market, the USDA reports have been showing pretty high crop ratings for soybeans and corn," said Kaname Gokon at brokerage Okato Shoji Co in Tokyo. "Looks like it will be an early harvest this year which will keep pressure on the market."
There was more rain added to the outlook for key growing areas of the U.S. Midwest, which will help protect the corn crop from the scorching temperatures expected over the next few days. Additionally, temperatures are forecast to quickly moderate, easing stress on the crop as it pollinates.
For soybeans, with a critical period of development for much of the U.S. crop approaching, the latest U.S. weather reports call for adequate rain and moderate temperatures during August.
That outlook eased concerns about the La Nina weather phenomenon laying waste to yields. Potentially giving a boost to corn prices, Argentine grain truckers started an open-ended strike on Monday over transport prices.
Corn exports from Argentina, the world's No. 3 supplier, could slow if farmers and the striking truck drivers fail to reach a deal, an exporters' organization said. Commodity funds were net sellers of CBOT soybean, corn and wheat futures contracts on Wednesday as improving weather forecasts sparked further declines in prices.