Chicago soybean prices were supported by concerns about the US crop on Wednesday, while wheat rose on worry poor weather could reduce harvests in major exporter Australia. Corn was down after rising on bargain-buying after prices slid to a six-week low earlier this week.
"Soybeans are showing the main market firmness today with support coming from concern about US crop conditions and firmer crude oil," said Frank Rijkers, agrifood economist at ABN AMRO Bank. "Corn is little changed to slightly weaker with US harvest progress better. Worry about dry weather in the US is supportive for grains."
"Wheat is being supported by concerns about the impact on the Australian crop from the El Nino weather pattern."
Chicago Board of Trade August soybeans rose 0.4 percent to $9.80 a bushel at 1001 GMT and September wheat gained 0.05 percent to $4.93-3/4 a bushel. September corn fell 0.1 percent to $3.68-1/4 after dropping on Monday to its lowest since June 23.
Corn and soybean prices have faced downward pressure in the past week as ideal weather across the US Midwest has raised hopes for another year of record supplies.
Traders were also adjusting positions ahead of the US Department of Agriculture (USDA) monthly supply and demand report on August 12.
"The USDA on Monday said the condition of US soybean crops had improved in the last week but was still down on the year, which is supportive," Rijkers said. On Monday the USDA assessed 63 percent of the soybean crop at good to excellent condition, up from 62 percent a week before but below the 71 percent last year. The corn rating steadied at 70 percent good to excellent this week.
"The USDA's view of corn conditions is more positive and market attention is returning to prospects for a good US corn harvest," Rijkers said. "Gains in wheat are being limited by the stronger dollar which will burden US wheat in export markets."
Brokerage INTL FCStone on Tuesday estimated this year's US soybean harvest at 3.797 billion bushels, down from 3.885 billion bushels forecast by the USDA in July. FCStone's estimates are what the company predicts will be final production, not what it expects the USDA will say next week.