US soyabean futures fell to a five-month low on Friday on word that China, the world's top importer of the oilseed, has cancelled orders. The grain markets pared losses and corn turned higher as equities firmed after congressional leaders said their meeting with President Barack Obama about the "fiscal cliff" was constructive, traders said.
The US government's decision to maintain its mandate to add corn ethanol to motor fuel had a limited impact on prices, said Jerry Gidel, chief feed grain analyst for Rice Dairy.
Several states had asked regulators to waive the mandate following the worst US drought in 50 years, saying it was driving food and feed prices higher. January soyabeans were down 1.2 percent at $13.84-3/4 a bushel at the Chicago Board of Trade by 11:20 am CST (1720 GMT). December corn was up 0.2 percent to $7.23 a bushel, while December wheat fell 1.1 percent to $8.36-1/4 a bushel.
Soyabeans have dropped 23 percent since reaching an all-time high of $17.94-3/4 on September 4 due to concerns about a devastating US drought reducing supplies. The USDA on Friday said soyabean export sales last week were 585,200 tonnes, a two-week high that topped estimates for 250,000 tonnes to 550,000 tonnes. However, the sales were not impressive in light of the cancellations, traders said.
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