U.S. wheat and soybean futures reversed Thursday, retreating amid fresh selling by financial investors.
Meanwhile, corn edged higher.
Wheat prices fell to a nearly three-week low, succumbing to pressure from a higher U.S. dollar and weaker-than- expected demand for U.S. supplies of the crop. Analysts said prices for the grain declined in part due to a weekly report from the U.S. Department of Agriculture showing net wheat sales in the week ended July 9 totaled 291,000 metric tons, below analysts'' expectations for 300,000 to 525,000 metric tons.
"Export demand for wheat steadfastly refuses to improve," said Charlie Sernatinger, head of grains trading at ED&F Man Capital Markets, in an afternoon note to clients.
A higher U.S. dollar also weighed on wheat prices, with strength in the U.S. currency, which rose 0.4% against a basket of international currencies Thursday, curtailing export demand by making U.S. crops more expensive for overseas buyers.
Wheat futures for September delivery fell 4 1/2 cents, or 0.8%, to $5.62 1/4 a bushel at the Chicago Board of Trade, the lowest closing price since Jun. 26.
Soybean prices slipped for a third consecutive session, after rising earlier in the day, on selling by investors like hedge funds. Analysts said concerns over adverse weather and a smaller-than-expected crop this year ultimately gave way to concerns over demand for the crop. Speculation that livestock producers in the eastern U.S. had purchased soybean meal--a derivative product used in animal feed--from South America at a discount to U.S. prices weighed on prices for the oilseeds, analysts said.
CBOT August soybeans fell 6 cents, or 0.6%, to $10.19 a bushel.
Corn prices ticked higher, buoyed by forecasts for hot, dry weather that could thwart pollination of the crop after rains drenched fields in the eastern Midwest. While warmer temperatures will help dry some sodden fields, too much heat or dryness can be unfriendly for plants that recently have suffered from excess rainfall.
"Temperatures are starting to turn the corner in the Corn Belt to the upside," said Mr. Sernatinger.
CBOT September corn added 1/2 cent, or 0.1%, to $4.30 a bushel.