Investing.com - U.S. wheat futures rose to a one-week high on Tuesday before turning modestly lower as investors readjusted positions ahead of the U.S. Department of Agriculture's prospective plantings report due later in the session.
On the Chicago Mercantile Exchange, US wheat for May delivery hit an intraday peak of $5.3150 a bushel, the most since March 23, before trading at $5.2663 during U.S. morning hours, down 3.38 cents, or 0.64%.
A day earlier, wheat rallied 22.4 cents, or 4.43%, to settle at $5.3020 as a lack of rainfall in the U.S. grain belt fuelled concerns over the health of the winter-wheat crop.
According to the USDA, Oklahoma winter wheat was rated 44% good to excellent, up from 40% in the previous week, while Texas winter wheat improved by 4% to 55%.
In Kansas, the top wheat-producing state, the wheat crop was rated 41% good to excellent, unchanged from the preceding week.
Elsewhere on the Chicago Board of Trade, US corn for May delivery tacked on 0.47 cents, or 0.12%, to trade at $3.9488 a bushel. US corn for May delivery rose 3.4 cents, or 0.9%, on Monday to close at $3.9440.
The USDA's prospective plantings report is likely to show farmers in the U.S. cut corn sowings this spring in favor of planting more-profitable soybeans.
Meanwhile, US soybeans for May delivery dipped 2.62 cents, or 0.27%, to trade at $9.6438 a bushel after touching a daily low of $9.6413, the weakest level since March 20. On Monday, US soybeans for May delivery inched up 0.4 cents, or 0.05%, to end at $9.6760.
Optimism over the outlook for supplies in Brazil and Argentina drove down prices.
Brazil and Argentina are major soybean exporters and compete with the U.S. for business on the global market. Large South American crop prospects could weigh on demand for U.S. supplies.
Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.