Soybean falls, led by crude; corn, wheat follow

Weak export demand for soybeans added pressure.

"There isn't a whole lot of fundamental news for the beans right now. With the crude oil down, I guess they decided to take the beans down," said Jack Scoville, an analyst with the Price Group in Chicago.

US crude prices hit their lowest level in four months, testing a key support level, on a dimmer economic outlook and the European debt crisis.

Corn turned lower as soybeans steadily declined. Spot July corn at the Chicago Board of Trade has fallen more than $1 a bushel, or 12 percent, since setting an all-time high at $7.99-3/4 a bushel one week ago.

The retreat left corn poised to extend its losing streak to five straight sessions, driven by fund long liquidation and profit-taking.

"We are just weak across the board on everything. As much as we've been down, this is a pretty dismal bounce-back," said Mark Schultz, analyst with Northstar Commodity Investments in Minneapolis.

At the CBOT as of 12:07 p.m. CDT (1707 GMT), July soybeans were down 19 cents at $13.31-1/2 per bushel.

July corn was down 5 cents at $6.96-1/2 a bushel and July wheat was down 2 cents at $6.71-1/4 a bushel.

Corn was underpinned by a decline in the dollar, which fell against the euro on hopes for a new Greek aid package and as Germany vowed to work with the European Central Bank to resolve the crisis.

CBOT wheat also turned lower to extend its slide to five days, hitting a three-month low on continuous price charts.

The spot July wheat contract drew early support after the CBOT reported that commercial grain handler Archer Daniels Midland canceled 61 contracts that had been registered for delivery.

Such moves typically reflect strength in the cash market. The cancellations came amid stepped-up use for US wheat as an alternative livestock feed, in light of recent strength in corn prices.

NYMEX crude fell as worries about oil demand and a slowing economy lingered, even as the dollar softened.

Copyright Reuters, 2011