CHICAGO - U.S. soybean futures backed off two-year highs on Friday, with investment funds locking in profits from the oilseed's sharp rally this week.
Wheat firmed as heavy rains dented crop prospects in western Europe, traders said. The gains in wheat spilled over to corn, which firmed slightly but faced resistance at the multi-month high hit on Thursday.
Renewed rain in Argentina heightened concerns about crop losses in the world's number three producer, and kept soybean declines in check. Losses also were limited in corn due to worries about crop shortfalls in Brazil following a drought.
At 10:25 a.m. CDT (1525 GMT), Chicago Board of Trade July soybean futures were down 4-1/4 cents at $11.40 a bushel. The most actively traded contract peaked at $11.69 a bushel, its highest since June 2014, early in the session.
Rains this week in Argentina's top agricultural province, which was previously unaffected by recent wet weather, may further damage the 2015/16 soybean harvest, the Buenos Aires Grain Exchange said on Thursday.
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Soybean futures were on track for a 4.8 percent gain this week, which would be its eighth straight week of gains and its 13th in the last 14 weeks. It would be the longest streak since one of equal length in 2003.
Concerns are emerging that the run-up may have been overdone.
"We now regard the extent of the latest price rise to be excessive," Commerzbank said in a market note on Friday.
CBOT July corn was 3/4 cent higher at $4.16 a bushel and up just 0.7 percent for the week.
CBOT July wheat futures were up 7 cents at $4.92-1/2 a bushel. The contract has gained 2.4 percent so far this week.
The condition of cereal crops in France worsened again last week, farm office FranceAgriMer said on Friday, in a sign that heavy rain is affecting crops in the European Union's largest grain producer.
"Current weather in parts of Europe is not favourable, with wet conditions across much of France and Germany moving east into the Balkans and southern Russia," David Sheppard, managing director of UK merchant Gleadell, said in a market note.
"This, together with forecasted warmer temperatures, could increase disease potential in crops."
