CHICAGO, Nov 25 (Reuters) - Chicago wheat futures fell more
than 3% on Wednesday and corn and soybean futures also slipped
as traders booked profits after recent highs in all three
markets, and ahead of Thursday's U.S. Thanksgiving holiday,
analysts said.
Chicago Board of Trade March wheat futures settled
down 21 cents at $5.96-1/2 a bushel, turning lower after rising
to a three-week high of $6.22-3/4 in early moves.
Last month, the most-active CBOT wheat contract neared
a six-year top at $6.38-1/4 as dry conditions in parts of Russia
and the United States raised supply concerns.
But spring weather is typically more important in
determining crop size, and in the absence of fresh supportive
news, traders on Wednesday opted to book profits.
"Most of the wheat stuff is known. So there is not a lot of
new news," said Don Roose, president of Iowa-based U.S.
Commodities.
Also bearish, the Sovecon agriculture consultancy raised its
forecast for Russia's 2020/21 wheat exports by 1.0 million
tonnes, to 40.8 million tonnes, due to a higher crop estimate
and a high pace of exports.
CBOT soybeans and corn closed lower. Benchmark soybean
futures ended down 7-1/4 cents at $11.84 a bushel,
retreating farther from Monday's four-year high of $12 a bushel,
and corn settled down 5 cents at $4.27-1/2 a bushel.
Traders have been liquidating long positions in CBOT
December corn, wheat, soymeal and soyoil
futures ahead of first notice day for deliveries on
Monday, Nov. 30.
Soybeans were pressured by signs that Chinese buyers may be
balking at lofty U.S. prices. Some Chinese soybean importers and
processors are looking to cancel U.S. cargoes for December and
January shipment, after crushing margins collapsed following the
CBOT rally, three trade sources said.
"The bottom line is more demand uncertainty going forward,"
Roose said.
However, soybean and corn futures had underlying support
from worries about dry conditions in parts of Brazil and
Argentina, where crops are still developing.
The CBOT will be closed on Thursday before reopening for a
shortened session on Friday.
The U.S. Department of Agriculture is scheduled to release
its weekly export sales report on Friday, a day later than
normal, due to the holiday.
(Additional reporting by Gus Trompiz in Paris and Naveen
Thukral in Singapore; Editing by Kirsten Donovan and Grant
McCool)