U.S. wheat again revisited contract lows on Wednesday as an improved U.S. crop outlook and export-punishing strength in the dollar depressed sentiment.
Bargain-hunting supported both corn and soybeans after Tuesday's fall to multi-week lows on prospects for ample global supplies.
Chicago Board of Trade (CBOT) May wheat fell 0.1 percent to $4.45-1/2 a bushel by 1104 GMT, at the contract low hit the previous day and the lowest for a most-active contract since June 2010.
May soybeans were a fraction higher at $8.58-1/2 a bushel after touching their lowest since Jan. 6 on Tuesday. May corn rose 0.2 percent to $3.56-3/4 a bushel after touching its lowest since Jan. 12 on Tuesday.
"Wheat, corn and soybeans are all seeing some limited support from bargain-buying today after their sharp falls on Tuesday, but overall sentiment in all three is bearish because of the outlook for large global supplies, with crop conditions in the United States and South America looking positive," said Frank Rijkers, agrifood economist at ABN AMRO Bank.
Monthly crop reports released by the U.S. Department of Agriculture (USDA) on Monday showed crop condition ratings in Kansas, the top U.S. winter wheat producer, improved in February. Winter wheat was in better shape than a year ago in Oklahoma and Montana, the No.3 and No.4 winter wheat states.
But the U.S. crop is likely to meet big unsold supplies, with global wheat ending stocks for the 2015/16 season projected to reach a record high, the USDA has said.
The dollar, meanwhile, traded near a one-month high against a basket of major currencies on Wednesday, providing an unwelcome burden to U.S. supplies at a time of intense competition in global wheat export markets.
"Along with bargain-buying, corn is seeing some support today from reports that South Africa's maize crop may be smaller than expected, which may generate more imports," Rijkers said. "Soybeans are also receiving support from reports that China's 2015/16 season soybean imports are expected to rise about 6 percent."