Chicago | Reuters — U.S. corn and wheat futures fell on Wednesday after hitting 11-day highs a day earlier as traders waited for more bullish news before pushing grain prices above those recent peaks.
Soybeans were firm, shedding overnight weakness, with investors hoping that export demand for U.S. supplies of the oilseed will remain strong until Brazil farmers begin harvesting their crop.
Price moves in the agriculture sector were mostly muted as traders awaited direction from a U.S. Federal Reserve interest rate decision that came late in the session.
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The Federal Reserve raised interest rates by half a percentage point and projected at least an additional 75 basis points of increases in borrowing costs by the end of 2023.”Today it is the Fed that will be closely followed,” consultancy Agritel said in a note.
Chicago Board of Trade January soybean futures settled up 2-1/2 cents at $14.82-1/4 a bushel (all figures US$).
“Beans continue to fare better than the feed grains in general, thanks to ongoing overall demand,” Matt Zeller, director of market information at brokerage StoneX, said in a note to clients.
CBOT March corn futures ended down three cents at $6.50-1/2 a bushel and CBOT March soft red winter wheat closed off 1-1/2 cents at $7.49-1/4 a bushel.
Wheat futures were led lower by a sharp decline in K.C. hard red winter wheat contracts that track the crop grown in the U.S. Plains. Heavy snowfall in that part of the U.S. will provide much needed moisture to dry soils, boosting harvest expectations for the dormant crop.
K.C. hard red winter wheat for March delivery shed 15 cents to $8.50-1/4 a bushel.
Drought in Argentina was still a risk for international corn and soybean supply, with the benefit of showers last weekend potentially limited by a hot week ahead, analysts said.
— Reporting for Reuters by Mark Weinraub in Chicago; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.
