(Updates prices, adds analyst comments; changes byline, dateline, previous LONDON)
By Michael Hirtzer
CHICAGO, July 14 (Reuters) - U.S. corn futures retreated from an earlier one-year high and fell as much as 2 percent on Tuesday on technical selling and forecasts for crop-friendly weather in the United States.
Wheat futures also were lower, pressured by the advancing winter wheat harvest. Soybean futures were little changed as a Monday report of a decline in U.S. crop conditions was offset by outlooks for favorable weather ahead.
Meteorologists said extended forecasts showed drier conditions in the eastern portion of the U.S. Corn Belt and rains in the western part, each of which were likely to benefit developing corn and soybean crops.
“Rains in the east should not be heavy enough to add to wetness problems, especially given a drier 11-15 day outlook there,” the Commodity Weather Group said in a note to clients.
The U.S. Department of Agriculture late on Monday reduced soybean crop conditions and left corn conditions unchanged.
Heavy rains during the past three months amid the El Nino weather pattern have left pools of water on some U.S. fields, limiting corn and soybean yield potential and reducing wheat grain quality, while propelling prices higher.
Chicago Board of Trade September corn was down 8-1/4 cents at $4.32-1/2 per bushel as of 11:10 a.m. CDT (1610 GMT), after earlier reaching a one-year high of $4.43-1/4. Soybeans for August delivery were down 1-3/4 cents at $10.35-3/4.
“We’ve been on a hell of a rally. We’re due for a setback. The RSIs (Relative Strength Index) are way overbought,” said Roy Huckabay, analyst at the Linn Group in Chicago.
Losses in soybeans were limited by data this week showing that China imported 8.09 million tonnes of soybeans in June, the highest volume so far this year, as crushers increased purchases to take advantage of cheap South American supplies.
“(China) is also set to import large quantities of soybeans in July and August,” Commerzbank analyst Michaela Kuhl said.
Meanwhile, the buying agency for top wheat importer Egypt said at midday it purchased 235,000 tonnes of Russian and Romanian wheat.
The agency, as expected, eschewed U.S. supplies that are as much as $50 per tonne more expensive than wheat shipped out of the Black Sea region.
CBOT wheat for September delivery was down 4-1/4 cents at $5.71-1/2 per bushel, on pace to close the session at the lowest level since June 29. (Additional reporting by Nigel Hunt in London and Naveen Thukral in Singapore, editing by David Evans and Peter Galloway)