HAMBURG/SINGAPORE: Chicago soybean futures fell on Wednesday, pulling back from a new four-month high hit earlier in the day as traders squared positions in advance of the market closure for the US Thanksgiving holiday.
"Soybeans, wheat and corn are facing selling pressure today in a reserved mood ahead of the US Thanksgiving holiday on Thursday," said Matt Ammermann, commodity risk manager for INTL FCStone.
Chicago Board of Trade January soybeans fell 0.4 percent to $10.25 a bushel at 1228 GMT. Strong Chinese soy prices and bumper US export sales to China pushed soybeans to a new four-month high of $10.33-3/4 a bushel earlier on Wednesday after also hitting four-month highs on Tuesday.
December wheat fell 1.2 percent to $4.02-1/4 a bushel and December corn fell 0.8 percent to $3.48 a bushel.
"Soybeans are seeing some selling after hitting four-month highs on Tuesday, in turn because of high Chinese domestic soy markets and strong US export sales to China," Ammermann said. "I think more than the Chinese exports are needed today to sustain soybeans at their highs, such as South American weather problems during the current soybean sowing season there."
"But with the absence of such news today, soybeans are drifting down."
Strong Dalian soybean futures in China this week have been influencing gains in the US market. The US Department of Agriculture (USDA) said on Tuesday US exporters sold 30,000 tonnes of soyoil to China, continuing a period of brisk US sales of soybeans and soy products to China.
The market will be watching the US weekly export sales report later this week for further direction.
The USDA on Monday rated 58 percent of the US winter wheat crop as in good to excellent condition, only slightly down from 59 percent the previous week.
"The US wheat crop is looking overall in decent condition with beneficial rain expected in some areas," Ammermann said. "World wheat supplies also look comfortable."
"Corn has been following soybeans recently and also faces resistance at around $3.55 to $3.60, and there is no impetus to challenge these levels today."
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