Soft red winter wheat futures at the Chicago Board of Trade fell sharply early Wednesday on a profit-taking setback after a strong weather-related rally on Tuesday, traders said.
At 10:23 am CDT (1523 GMT), wheat was down 6-1/2 cents to 11-3/4 cents per bushel, with the July contract down 11-3/4 at $3.76-1/2.
Wheat surged on Tuesday on worries about excessive wet weather in the US SRW crop region and on limit gains in corn and soy futures. Traders said that rally left the market vulnerable to speculative profit-taking.
Technical support in the July contract at $3.82-1/2 per bushel was broken, driving the contract to a session low of $3.75-1/2.
Resistance was at $3.91-1/2. The nine-day relative strength index for July stood at 65 prior to the open on Wednesday. Chartists view a reading of 30 or less as an oversold market and 70 or more as an overbought market.