Soybeans fall, may snap winning streak on disappointing biofuel levels

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Soyoil selloff takes soybeans down too after U.S. releases biofuel targets

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Wheat falls on disappointing export sales

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Soy weakness weighs on corn

WINNIPEG, Manitoba, Dec 1 (Reuters) - Chicago soybeans fell on Thursday and looked to snap a five-day winning streak as the U.S. government proposed smaller-than-expected biofuels blending requirements, sparking a sharp sell-off in soybean oil.

Wheat slid on disappointing export sales, while soybean weakness dragged corn lower.

The most-active soybean contract on the Chicago Board of Trade (CBOT) was 2.7% lower at $14.29-1/2 a bushel as of 11:55 a.m. CST (5:55 GMT) after climbing to its highest level since Sept. 21 on Wednesday.

Soyoil plunged 7.9%.

The U.S. Environmental Protection Agency

proposed

increases in the amount of ethanol and other biofuels that oil refiners must blend into their fuel over the next three years, but they missed expectations.

Production of renewable diesel, which can be made from soyoil, is growing, "but not at the unrealistic pace expected by fund managers," said Arlan Suderman, StoneX chief commodities economist.

Soyoil was also vulnerable to selling because it has built a big premium over palm oil, a rival vegetable oil, and because funds hold long positions, said Jim Gerlach, president of A/C Trading.

"(Soy) oil, which has been the shining star for quite some time, is taking it on the chin."

Soybeans and wider commodity markets have previously been buoyed by signs China is softening its tone on COVID-19 rules after rare public protests in the world's second-largest economy.

CBOT wheat was down 1.3% at $7.85-1/2 a bushel amid tough competition from Russian and Black Sea supplies, and corn gave up 1.1% to $6.59-1/2 a bushel.

The U.S. Agriculture Department (USDA) said that export sales of wheat totalled 162,500 tonnes in the week ended Nov. 24. That was below the low end of analysts' forecasts that ranged from 300,000 to 725,000 tonnes.

USDA reported weekly corn export sales of 632,700. That compares with market expectations for 475,000 to 1.1 million tonnes. (Reporting by Rod Nickel in Winnipeg, Julie Ingwersen and Mark Weinraub in Chicago, Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Subhranshu Sahu, Uttaresh.V, Sherry Jacob-Phillips and Mark Porter)