PARIS/SINGAPORE, Mar 28 (Reuters): Chicago wheat futures extended losses on Wednesday to hit a seven-week low as rains in parts of the U.S. Plains improved prospects for drought-hit crops, putting the focus back on ample global supplies.
Soybeans also eased as attention shifted towards U.S. government planting estimates on Thursday that are expected to show soybean acreage expanding and overtaking corn.
Corn futures were also slightly lower, with weakness across equity and commodity markets adding to a cautious mood on grain markets before Thursday's U.S. Department of Agriculture (USDA) planting report.
The Chicago Board Of Trade most-active wheat contract was down 0.9 per cent at $4.45 a bushel by 1107 GMT. It earlier touched its lowest since Feb. 06 at $4.44-1/2.
CBOT soybeans eased 0.3 per cent to $10.16-3/4 a bushel, while corn also ticked down 0.3 per cent, to $3.73 a bushel.
"The U.S. winter wheat crop had a pretty tough winter period but spring weather has been favourable," said Phin Ziebell, an agribusiness economist at National Australia Bank.
"A large chunk of the rally that we saw in February has gone."
Showers crossing the U.S. Plains on Tuesday and more rain expected on
Wednesday should alleviate dryness, particularly in southern wheat belts, adding to moisture received last week.
The USDA on Monday rated 13 per cent of winter wheat in Kansas, the top producer, in good-to-excellent condition, up from 11 per cent a week earlier, although still well down from a year ago.
In the soybean market, recent price support from severe drought in major exporter Argentina was fading.
"While the market is having to digest a constant stream of bad news about Argentina, the estimates for the crop in neighbouring Brazil - where harvesting is almost complete - are soaring to ever new highs," Commerzbank analysts said.
"The prospect of an even larger U.S. soybean acreage ... is also weighing on the price."
