- Soybeans dip after climbing to highest since June 2016.
- Corn, wheat ease; strong demand, tight supply limit losses.
SINGAPORE/PARIS: Chicago soybean futures fell nearly 1% on Thursday, after hitting their highest level since June 2016 in the previous session on the back of strong demand and dry weather in parts of South America.
Corn and wheat also weakened, following the trend.
"Soybeans showed significant volatility yesterday in Chicago. However, the price levels reached could end up limiting the enthusiasm of buyers," French consultancy Agritel said in a note.
The most-active soybean contract on the Chicago Board Of Trade (CBOT) fell 0.9% to $11.65-1/2 a bushel by 1100 GMT. The market climbed to its highest since June 2016 at $11.90 a bushel on Wednesday.
Corn was down 1.2% at $4.20-3/4 a bushel, after rising to their highest level in 16 months the previous day, and wheat lost 0.5% at $5.94-1/2 a bushel.
Global grain and oilseed markets have been supported by dry weather in South America and strong demand from China. Recent rains have alleviated some of the weather stress in Brazil and Argentina, but tightening global supplies, particularly for soybeans, have left little room for a crop shortfall.
"The rally in agricultural commodities is driven by real fundamentals," said one Singapore-based trader.
The US Department of Agriculture (USDA) on Wednesday said private exporters sold 140,000 tonnes of US corn to undisclosed buyers. That followed recent large corn sales to Mexico and South Korea.
US farmers could plant a record acreage of major field crops next year if favourable prices continue and spring weather allows, a USDA official said on Wednesday.
Commodity funds were net buyers of CBOT corn, soybean, soyoil and wheat futures contracts on Wednesday and net sellers of soymeal, traders said.