SINGAPORE- Chicago soybean futures edged lower 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 slid in early Asian trade.
“The rally in agricultural commodities is driven by real fundamentals,” said one Singapore-based trader. “We have dryness in South America, which is a major concern, and China is boosting imports.”
The most-active soybean contract on the Chicago Board Of Trade (CBOT) fell 0.2 percent to $11.74 a bushel. The market climbed to its highest since June 2016 at $11.90 a bushel on Wednesday.
Corn was down 0.5 percent at $4.23-3/4 a bushel and wheat lost 0.1 percent to $5.97-1/4 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.