GRAINS-Chicago wheat retreats after nearing 2-year high on weather concerns

By Heather Schlitz

CHICAGO, April 29 (Reuters) - Chicago wheat futures fell on technical selling after hitting their highest point in nearly two years on a continuous chart on Wednesday, initially buoyed by support from fund buying and dry weather in the U.S. Plains, traders said.

Corn hit a one-year high and soybeans gained on support from rising crude oil prices linked to the Iran war and an uptick in demand as a result of stronger crush margins.

The most-active wheat contract on the Chicago Board of Trade Wv1 settled 4-3/4 cents lower at $6.53 per bushel.

Rainy weather in the U.S. Plains wheat belt could alleviate some of the drought stress on crops, but some areas may have already experienced yield loss. Upcoming rain is forecast to miss some dry areas.

Strength in wheat futures has attracted buying from speculators and managed money.

"Wheat just keeps grinding higher, and it's like a self-fulfilling prophecy; it keeps attracting flow since everyone wants a winner," said Joe Davis, a trader at Futures International. "Everyone's just hopping on board."

Corn Cv1 settled 2-1/4 cents higher at $4.77-3/4 per bushel, after earlier hitting a one-year high of $4.79 per bushel.

Corn futures have been buoyed by strong export demand and slight weather concerns in the U.S. corn belt.

Expectations of reduced planting due to high fertiliser costs have also supported corn futures.

Early U.S. soybean and corn planting has been progressing well, although storms expected in the U.S. Midwest could delay seeding in some areas.

Midwest rains are expected to taper by the middle of the week, so farmers are unlikely to remain sidelined for long.

Soybeans Sv1 settled 7-3/4 cents higher at $11.97 per bushel.