Chicago wheat, corn retreat on favorable weather; soybeans higher

Chicago Board of Trade (CBOT) agricultural commodities closed mixed on Wednesday with wheat, corn extending their losses amid easing weather concerns, while soybeans regained their footings following the U.S. dollar slump.

Chicago wheat led the decline as the most active wheat contract for May delivery dropped 6.5 cents, or 1.36 percent, to close at 4.7075 U.S. dollars per bushel. May corn delivery lost 0.25 cents, or 0.07 percent, to close at 3.6825 U.S. dollars per bushel. Meanwhile, soybean for May delivery added 2.5 cents, or 0.28 percent, to close at 8.945 dollars per bushel.

Wheat fell for a second session in a row on Wednesday as traders saw U.S. wheat crops are still in a good condition despite the lack of rain in the forecast.

The weather service projected in the near term, lite showers are possible in Oklahoma, Kansas, as well as the western U.S. corn belt. Analysts said dryness will favor corn planting in southern U.S. beginning this weekend.

The weekly ethanol production report released by the U.S. Energy Information Administration on Wednesday showed a strong rise in production and a drop in inventories, which was seen as modestly supportive to corn future. U.S. ethanol production through the week ending March 11 was up 2.1 percent from the prior week, to 999,000 barrels per day, while ethanol stocks were down almost 2 percent on the week, but still sitting record highs.

After dropping during most of the session,soybean prices erased all their losses and bounced back as the U.S. dollar fell sharply following the U.S. central bank releasing its policy meeting's statement Wednesday afternoon, lifting the appeal of dollar-denominated commodities. Enditem