CHICAGO: Soybean futures on the Chicago Board of Trade fell 2 percent on Friday, halting a three-day advance, as investors took profits by liquidating long positions and unwinding intra-market and inter-market spreads, traders said.
* Funds hold a near record-large net long position in CBOT soybeans, leaving the market vulnerable to long liquidation.
* Despite Friday's sell-off, front-month soybeans settled 1 cent higher for the week, halting a two-week slide.
* Traders exited long soybean/short wheat spreads on worries about dry weather hurting wheat yield prospects in the US Plains, Russia and China.
* Soybeans also pressured by news this week that China, the world's top soy importer, will sell 600,000 tonnes of domestic soy from state reserves next week, potentially slowing its purchases on the world market.
* Favorable weather for most of the US Midwest adds pressure. Rains are likely in the northwestern US Midwest this weekend, boosting soil moisture for recently planted crops in Iowa and Minnesota, said John Dee with Global Weather Monitoring.
* Some light rain expected Sunday and Monday in areas east of the Mississippi River but that portion of the Corn Belt will be mostly dry for the next 10 days. Temperatures seen warm for next week, peaking in the low 90s (degrees Fahrenheit).
* As of 1:44 p.m. CDT (1844 GMT), ICE US July soybeans were down 31-1/4 cents at $14.06-3/4 a bushel on volume of 409 contracts.
* CBOT July soybeans fell below support at the 50-day moving average of $14.17-3/4.
* CME Group said it would start nearly around-the-clock trading in CBOT grains and oilseeds on Sunday night after US regulators approved its plan to expand electronic trade to 21 hours per session, from 17 hours.
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