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GRAINS-Soy, corn futures pull back on profit-taking, South American weather condition

U.S. soybean futures fell about 2% on Thursday as forecasts for muchneeded rains in dry locations of Argentina's crop belt and expectations of an enormous Brazilian soy harvest sparked a round of profittaking, analysts stated.

Corn futures sagged on rain prospects for Argentina and pressure from a wave of farmer grain sales after the benchmark futures agreement touched its highest level in a year today. Wheat followed the lower pattern.

Since 12:51 p.m. CST (1851 GMT), Chicago Board of Trade soybeans were down 22-1/4 cents, or 2.1%, at $10.20-1/ 2. per bushel. Corn futures were down 4-1/4 cents, or 0.9%,. at $4.74-1/ 2 per bushel and CBOT wheat was down 9 cents,. or 1.7%, at $5.38 a bushel.

Soybeans and corn fell on expectations that weekend. showers in Argentina might relieve crop tension. Argentine farmers'. groups have asked the government to offer tax cuts for the. sector, which they said remained in a vital circumstance due to a. dry spell.

Some experts saw the improved Argentine weather condition outlook. as a cue for speculators to book earnings after CBOT corn hit a. one-year high up on Tuesday at $4.79-3/ 4 a bushel and soybeans. notched a three-month top at $10.64.

Commodity funds have broadened their net long position in. CBOT corn futures in recent weeks, leaving the market vulnerable. to bouts of long liquidation.

Farmer selling has been heavy in current days, causing. much weaker basis, which fund managers seem to be just figuring. out, StoneX chief commodities economic expert Arlan Suderman wrote in. a customer note.

Soybeans were more pressured by the technique of the. harvest in Brazil, the world's leading producer. Agroconsult, a. Brazilian consultancy, raised its quote of the country's. soybean crop to a record 172.4 million metric loads, from 172.2. million previously, ahead of a countrywide crop tour.

On the other hand, CBOT soymeal futures were down about. 2.5% a day after the National Oilseed Processors Association. reported a record-large U.S. soy crush in December, underscoring. numerous soymeal output.

Wheat futures dipped in the middle of drab demand.

The International Grains Council

(source: Reuters)