Improving weather for South American corn and soyabeans and US wheat pressured prices of all three crops early on Wednesday, driving Chicago wheat futures to a seven-month low before they firmed in choppy trading. Corn was on course for a ninth straight day of losses - its longest losing streak in 5-1/2 years - and soyabeans fell to a one-month low.
Corn and soyabean prices reached record highs in 2012 as drought ravaged US growing areas. But prices fell back as US crops turned out better than feared, and large looming Brazilian and Argentine harvests in early 2013 look set to replenish global supplies.
Early expectations are for robust US spring planting of corn and soyabeans. "We have a long planting season and growing season ahead, and I think maybe (selling) is a little overdone, but there's not a lot for the market bull to hang onto right now," said Shawn McCambridge, analyst at Jefferies Bache in Chicago.
Chicago Board of Trade March corn touched a one-month low before paring losses to 1 cent at $6.95-1/4 a bushel by 9:57 am CST (1557 GMT). March soyabeans fell 3-1/2 cents, or 0.3 percent, to $14.17-1/4 a bushel, giving up earlier gains in Asian trade and touching the lowest nearby price since January 11.
Chicago March wheat was up 1-1/4 cents to $7.33-1/4 a bushel. Wheat firmed after dipping earlier to $7.22-1/2, the lowest nearby price since last summer. The market will look to fresh planting estimates from the US Department of Agriculture at its annual forum late next week. The acreage estimates could be even larger than the USDA's baseline projections released on Monday, observers say. The USDA projects US corn output to rise 34 percent to a record 14.4 billion bushels this year, assuming a return to normal weather and yields after drought stunted output in 2012.
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