SYDNEY: US wheat fell 1 percent on Thursday after hitting a two-week high in the previous session, amid a broad-based commodity sell-off and a firming dollar as the US Federal Reserve signalled a slowdown in the pace of bond purchases.
Market sentiment was dampened further after economic data from China hinted at weakening of the world's second largest economy.
Corn fell, having touched a two-week high on Wednesday, while soybeans also slid.
Chicago Board Of Trade July wheat slipped to $7.00-1/4 a bushel. It jumped 2.8 percent in the previous session, and hit an intra-day peak of $7.10-3/4, on expectations for increased domestic demand.
"Wheat has fallen back today partly on a more benign weather outlook and some correction from the solid overnight rally. But the main impact today is from broader movements in the currency, making life for U.S exporters even more uncompetitive," said Garry Booth, manager of agricultural and commodity markets, ICAP.
The dollar index edged slightly higher to hover near a eight-day high, having jumped around 1 percent in the previous session. Commodity currencies were among the hardest hit with the Australian dollar slumping to a fresh 33-month trough.
December corn fell 0.96 percent to $5.65 a bushel after rising 3.63 percent in the previous session.
November soybeans fell 0.48 percent to $13.04-1/2 a bushel, having firmed 1.63 percent on Wednesday.
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