U.S. soybeans turned lower on Thursday as a subdued mood across financial markets encouraged the oilseed price to consolidate after rallying to a two-year high on fears of a dry, hot weather for U.S. crops.
Corn and wheat futures also fell, breaking a run of six sessions of gains as grain markets turned their attention to closely watched U.S. government crop forecasts on Friday.
The Chicago Board of Trade most-active soybean contract was down 0.8 percent at $11.68-1/2 a bushel by 1157 GMT. The market rallied 3.2 percent on Wednesday when prices hit their highest since June 2014 at $11.89-1/4.
Corn slid 1.5 percent to $4.25 and wheat dropped 1.1 percent to $5.14 a bushel.
The dollar rose against a basket of currencies while commodity and equity prices fell in cautious trading.
The downbeat mood curbed weather-fueled strength in grains and oilseeds, which have experiencing one of the steepest U.S. planting-season rallies on record.
Soybeans have led the spring rally in Chicago as the emerging weather risks to U.S. crops have added to price momentum after rain damage to the Argentine harvest and unabated demand from China.
"Where we go from here will all depend on what happens to the U.S crop," said Phin Ziebell, agribusiness economist at National Australia Bank.
Warm weather this week and the potential for a dry La Nina weather pattern in the U.S. Midwest this summer have made investors nervous about stress to soybean plants.
In exports, the U.S. Department of Agriculture (USDA) has announced spot soybean sales for three days in a row, highlighting a shift in demand towards U.S. soy after the rain-hit harvest in Argentina.
The market will get another indication of export demand from weekly U.S. export sales figures published at 1230 GMT.
Funds have been actively buying agricultural commodities, fueling the rally and were net buyers of CBOT soybean, corn and wheat contracts on Wednesday.
Analysts estimated that funds bought a net 20,000 soybean contracts, 8,000 to 15,000 corn contracts and 6,000 to 8,000 wheat contracts.
Investors are awaiting Friday's USDA crop report for adjustments to U.S. and worldwide supply and demand prospects.
Wheat markets have also rallied, despite ample worldwide stocks, as rain across Europe and recent showers at the start of the U.S. harvest had raised the risk of quality downgrades and tighter supply of milling-grade wheat.