Chicago wheat futures fell on Wednesday from the previous session's two-week high as ample global supplies outweighed worries over dry weather threatening U.S. winter crops.
"We are seeing some wheat selling pressure today after its strong rises in the past few days after concern about cold and dry weather in the Southern U.S. Plains," said Stefan Vogel, head of agricultural commodity markets research at Rabobank. "Soybean and corn markets are drifting ahead of the USDA (U.S. Department of Agriculture) U.S. planting estimates on Thursday."
The Chicago Board of Trade's most-active wheat contract fell 0.1 percent to $4.76 a bushel at 1011 GMT, having closed up about 1 percent on Tuesday when prices hit $4.77-1/2, the highest in two weeks. Wheat has risen around 3 percent this week on concern about poor crop weather in the United States.
Most active May corn was little changed, down 0.07 percent to $3.72-3/4 a bushel, after the market hit its highest in almost two months in the previous session.
Most active May Soybeans were up 0.08 percent at $9.16-3/4 a bushel after rising earlier on Wednesday to $9.17, matching a level hit on Tuesday and the highest since October.
The USDA will on Thursday release its closely-watched U.S. spring planting estimates alongside quarterly grain stocks data.
"I expect corn and soybeans to move in and out of positive territory in a relatively narrow range before the USDA report, the main investment funds seem now to have completed their position taking ahead of the USDA on Thursday," Vogel said. "The market is expecting increases in both U.S. corn and soybean sowings to be forecast by the USDA."
Chicago prices had been supported on Monday and Tuesday by fears about the impact of cold, dry weather in the southern U.S. Plains. Forecasts suggested dry weather could persist in the southern Plains, a key region for hard red winter wheat production.
Cold weather may slow wheat growth and cause some damage, but is unlikely to kill the crop.
"The wheat market still faces a background of large global supplies, with U.S. exports remaining sluggish," Vogel said. "Overall, despite the concern about U.S. weather it is still rather early in the season to talk about serious weather issues for U.S. wheat."
The market is still digesting news that China is scrapping its stockpiling scheme for corn, a move that could reduce Chinese imports. It intends to allow markets to set prices for the grain, the State Administration of Grain said in a statement.
"More details are needed from the authorities in China to assess the impact of the Chinese decision to end state stockpiling," Vogel. "China has huge corn inventories and their condition suffers with age, some action on them had been expected."
Meanwhile, soyoil has been supported by firmer palm oil recently but palm oil fell from its two-year highs on Wednesday, he added.