Chicago soybeans on Monday suffered the first drop in the latest six trading days, as investors began to believe that last week's rally was somewhat overdone. Besides, a stronger dollar added to the negative tone. But corn and wheat further climbed in the day.
The most active corn contract for Dec. delivery closed at 6.405 U.S. dollars per bushel, up 0.5 U.S cents, or 0.1 percent. Dec. wheat gained 1.5 cents, or 0.24 percent, to 6.2425 dollars per bushel. November soybean lost 17 cents, or 1.3 percent, to 12.53 dollars per bushel.
Market analysts said that the soybeans market was under selling pressures as some fund traders began to believe that last week's rally was a bit overdone. Besides, a negative outside market further weigh on the sentiment.
The dollar index, which measures the value of U.S. dollar against six other major currencies, on Monday declined 0.8 percent to trader around 77.2, which helped reduce the appeal of overall commodities market. Besides, a sharp drop in equity market added to the negative tone.
However, wheat managed to hold support and closed higher thanks to a dry weather forecast for the central and southern plains, which would affect the crop planting and germination.
Besides, traders said that the report of Commitments of Traders showed a hefty net short position from speculators on the wheat market, which leaves the market vulnerable to short-covering.