Chicago corn extends rally, wheat down on rain forecast

Chicago Board of Trade agricultural commodities closed mixed on Wednesday with wheat and soybeans falling, corn rising on prospects of delayed U.S. spring plantings that could lead to shrinking supplies later this year.
The most active corn contract for May delivery rose 1.75 cents, or 0.45 percent, to close at 3.95 U.S. dollars per bushel. Wheat for May delivery dropped 4.5 cents, or 0.86 percent, to close at 5. 19 dollars per bushel. May soybeans lost 3 cents, or 0.31 percent, to close at 9.7875 dollars per bushel.
Corn rose for a fourth consecutive session amid news that Mexico bought a two-cargo sale of U.S. corn. Meanwhile, the rainfall in southern U.S. recently hampered corn crop plantings, also supporting corn futures.
The weekly ethanol production report released by the U.S. Energy Information Administration on Wednesday showed a modest gain in production and inventory, roughly in line with expectations.
May wheat fell for the second session on favorable weather conditions. Rain is forecast in the parched growing belts in United States and Russia. News that Ukraine will open up its wheat export market added further pressure to the crop.
Soybeans continued to edge lower ahead of a meeting between Brazilian truck drivers and the government on Thursday. The risk of road blockages has clouded the market recently.
"A close in May CME wheat below 5.18 U.S dollars is viewed as bearish. Corn and soybean futures will do very little ahead of next Tuesday's USDA reports, and generally post-report rallies will be capped by a lack of U.S. grain demand and accelerating soybean exports out of Brazil and Argentina," said AgResource company, a Chicago-based agricultural research institute.