CHICAGO: US corn fell for the first time in nine sessions on Thursday, snapping the longest rally since June, as traders locked in profits and futures entered overbought territory.
Soybean and wheat futures also declined at the Chicago Board of Trade, with soybeans hitting technical resistance despite the best US export sales of the oilseed in eight months.
Agriculture futures bucked a broad commodities rally as crude oil jumped more than 1 percent and the Thomson Reuters Jefferies index of 17 commodities rose to the highest point since Dec. 3.
"(Corn) had a pretty decent run to the upside mainly because people were so oversold. But we're up into overbought conditions," said Shawn McCambridge, an analyst at Jefferies Bache in Chicago.
Corn futures for March delivery eased 4-3/4 cents to $7.26-1/2 per bushel as of 11:18 a.m. CST (1718 GMT). Corn had gained in each session since hitting a six-month low on Jan. 7. Futures rose above 60 on a relative strength index, or RSI, chart, which is considered overbought and an indication to sell.
Early in the session, the US Agriculture Department pegged export sales of corn last week as the most in two months after foreign buyers purchased US cargoes at the lower prices. No. 2 importer Mexico booked its largest buy since August.
"The likelihood of end users continuing to come in and extend coverage into this rally is unlikely, so we'll probably see the pace of sales run into the lower levels again very quickly," McCambridge said.
USDA pegged exports of soybeans as the largest since May in a week in which futures fell to roughly a two-month low on a continuous chart.
CBOT March soybeans were down 9-1/2 cents at $14.27 per bushel after earlier hitting a one-month peak. But futures hit resistance at the 50-day moving average on a continuous chart as well as the 200-day moving average on a March chart.
CBOT March wheat shed 4-3/4 cents to $7.80-1/4 per bushel, losing ground for the first time in five sessions.
"I think we are seeing some market consolidation after strong gains," said Luke Mathews, a commodities strategist at the Commonwealth Bank of Australia.
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