Chicago | Reuters — U.S. soybean futures dropped 1.2 per cent on Wednesday, pressured by a round of profit-taking and weakness in the cash market, traders said.

Wheat futures also were mostly lower after rain in the northern U.S. Plains eased some concerns about parched soils limiting the size of the crop.

Corn futures were firm, with gains in the nearby contracts outpacing strength in deferred offerings.

Both corn and soybean futures bounced off their session lows as the midday weather outlook for the U.S. Midwest showed less rain in the forecast than previous outlooks.

“Through the rest of June we will be trading every weather forecast,” said Brian Hoops, president at Midwest Market Solutions. “It was wetter overnight and then at midday it is starting to get a little bit drier again.”

CBOT July corn futures settled up 10-3/4 cents at $6.90-3/4 a bushel (all figures US$). CBOT December corn ended 1/4 cent higher at $6.09-3/4 a bushel.

CBOT July soybeans were 17-1/2 cents lower at $15.62-1/2 a bushel.

Weakness in the global vegetable oil markets added pressure to soybean futures.

Palm oil, which competes with soybean oil, dropped nearly five per cent on Wednesday due to rising palm oil supply and lower export estimates.

CBOT July soft red winter wheat was 2-3/4 cents lower at $6.82-1/4 a bushel. MGEX July spring wheat dropped seven cents to $7.64-1/4 and K.C. July hard red winter wheat gained two cents to $6.34-1/2.

Market attention is turning toward the U.S. Department of Agriculture’s monthly world supply-and-demand outlook on Thursday, with analysts on average expecting the agency to cut its projections for U.S. corn stocks, against a backdrop of brisk Chinese demand and Brazil’s drought-affected corn crop.

— Reporting for Reuters by Mark Weinraub; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.