US wheat futures eased 1.2 percent on Wednesday, setting back on a mild round of profit taking after prices posted their biggest rally since last summer on Tuesday. Corn and soyabeans ended higher after weakening overnight and early in the day session as traders moved to cover short positions amid concerns about planting delays in the US Midwest.
Investment funds held massive short positions, unusual for this time of year, and many traders were concerned they would begin to start covering them if farmers' seeding efforts were stymied by wet fields and cold soil temperatures, said Ed Duggan, senior risk management specialist at Top Third Ag Marketing.
Corn plantings have already been delayed in southern growing areas of the United States and a massive late winter storm could slow field prep in the US Midwest for the rest of the month. Chicago Board of Trade May corn futures ended up 3/4 cent at $3.66-1/2 a bushel.
Corn futures had peaked at $3.70 a bushel during the session on rumours that China had booked shipments of US corn. But the market retreated as there was no confirmation of any deals. The drop in wheat futures also weighed on the corn market. CBOT May soyabeans settled up 4 cents at $9.01 a bushel.
US farmers are expected to plant 91.475 million acres of corn in 2019 and 84.263 million acres of soyabeans, according to an annual survey conducted by commodity brokerage and analytical firm Allendale Inc. CBOT May soft red winter wheat was 5-3/4 cents lower at $4.47-1/4 a bushel.
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