GRAINS-Profit taking sparks sharp drop in soybeans; wheat, corn weaken
(Recasts, updates with closing prices, adds new analyst quote)
By Mark Weinraub
CHICAGO May 5 (Reuters) - U.S. corn and soybean futures fell on Thursday, with soy dropping 2 percent, on profit-taking by investment funds looking to lock in gains from recent rallies.
Wheat futures slid 1.8 percent to their lowest since mid-April, pressured by reports of strong crop prospects in the U.S. Plains and weak export demand.
Traders said investment funds liquidated 12,000 to 20,000 contracts from their long soybean position and 8,000 corn contracts.
"The market is starting to struggle a bit," said Karl Setzer, a market analyst at MaxYield Cooperative. "It needs something fresh. A bull market needs to be fed and we are just not feeding it right now."
Chicago Board of Trade July soybean futures settled down 21-3/4 cents at $10.12-1/4 a bushel.
Better-than-expected export sales pushed soybeans higher early in the session, but traders locked in profits after the market failed to break through the weekly high.
CBOT soft red winter wheat for July delivery was down 8 cents at $4.63-1/4 a bushel. K.C. July hard red winter wheat fell 5 cents to $4.52-3/4 a bushel. Continuación...