U.S. soybeans were lower on Thursday as drier weather in Argentina after the recent deluge inspired a bout of profit taking, while corn and wheat edged higher on a softer dollar.
The Chicago Board of Trade's most-active soybean contract was off 0.4 percent at $10.24-1/4 a bushel by 1105 GMT.
"The soybean market has been rallying on South American weather concerns. Brazil has now seen some showers and rain in Argentina has abated," Commonwealth Bank of Australia analyst Tobin Gorey said.
A third of Argentina's soy farms remain swamped after early April storms. Analysts estimated crop losses at 5 million tonnes as harvesting starts in areas dry enough to support the 30-tonne carbines used to bring in the beans.
Flooding on the Pampas grain belt could end up benefiting U.S. farmers. The weather is improving, but big importers like China are already looking to the Midwest to make up for a likely drop in supply from the South American soybean powerhouse.
"Soybeans are down on profit taking, but there has been damage to Argentina's crop from excessive rains which will decrease production," said Kaname Gokon at brokerage Okato Shoji in Tokyo.
"This is increasing demand for U.S. products."
The U.S. Department of Agriculture said on Wednesday that U.S. exporters sold 393,000 tonnes of soybeans to unknown destinations.
The market noted that forecast rains in Brazil this week would provide welcome relief to a parched corn crop there, but losses from recent dry weather are still widely anticipated.
Chicago corn prices edged up, with the most active contract up 0.3 percent at $3.85-3/4 a bushel.
Dealers said rains this week had slowed the pace of corn plantings in the U.S. Midwest but there appeared unlikely to be any prolonged delays.
"The forecast for next week is looking plenty favorable and the U.S. corn planting is already well ahead of schedule," Gorey of Commonwealth Bank of Australia said, noting the rains were not providing any significant support for prices.
Wheat futures also rose, with CBOT July up 0.5 percent at $4.85-3/4 a bushel and May wheatin Paris rising 0.3 percent to 151.75 euros a tonne. (Additional reporting by Naveen Thukral; Editing by Joseph Radford and Susan Fenton)