Harvest, technical selling drive soybeans to 6-week low

US soybeans and corn fell on Thursday as the brisk pace of the domestic harvest and global economic worries dampened investor sentiment after drought lifted prices to record highs this summer.

The lower prices triggered further selling based on technical indicators, taking soybeans down 3 percent to a six-week low and knocking corn down 1.4 percent.

Wheat followed them lower, but underpinning support from dryness concerns kept its losses modest.

The fall halted a 2 percent rebound in grains seen on Wednesday, when soybeans drew bargain buying after enduring their steepest two-day slide in seven weeks in a burst of liquidation by funds.

Chicago Board of Trade November soybeans lost 3 percent, or 50-3/4 cents, settling at $16.18-3/4 a bushel. Traders said the drop triggered orders to sell at $16.30-1/2.

China, which buys about 60 percent of globally traded soybeans, will carry on selling soybean reserves well into 2013 to contain food inflation and tight global supply, traders said.