U.S. soy driven to six-week low on harvest, technical selling


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U.S. soybeans and corn fell on Thursday as the brisk pace of the domestic harvest and global economic worries dampened investor sentiment after drought lifted prices to record highs this summer.

The lower prices triggered further selling based on technical indicators, taking soybeans down three per cent to a six-week low and knocking corn down 1.4 per cent.

Wheat followed them lower, but underpinning support from dryness concerns kept its losses modest.

The fall halted a two per cent rebound in grains seen on Wednesday, when soybeans drew bargain buying after enduring their steepest two-day slide in seven weeks in a burst of liquidation by funds.

A rapid start to the U.S. soybean harvest and reports of better-than-expected yields weighed on markets, even though analysts believe U.S. and global supply will remain extremely tight after the worst drought in the United States in half a century slashed yield potential.

"We?ve got kind of a perfect storm right now in the market," said Karl Setzer, market analyst at MaxYield Co-operative. "You?ve got funds holding long positions and taking some profit, we?ve got a breakdown in the technicals and we really don?t have any fresh, new fundamental support."

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