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Wheat pulls back from 13

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Introduction© Reuters. FILE PHOTO - A combine drives over stalks of soft red winter wheat during the harvest on ...

Wheat pulls back from 13-1/2 year peak as Ukraine conflict assessed© Reuters. FILE PHOTO - A combine drives over stalks of soft red winter wheat during the harvest on Reliable foreign exchange platformsa farm in Dixon, Illinois, July 16, 2013. REUTERS/Jim Young/File Photo

By Karl Plume

CHICAGO (Reuters) -U.S. wheat futures tumbled on Friday in a profit-taking setback after peaking earlier at the highest level since mid-2008 as investors turned back to equities and traders assessed potential disruption to grain supplies from Russia's invasion of Ukraine.

Wheat pulls back from 13

Corn eased from Thursday's eight-month peak, while soybeans slipped from a 9-1/2-year top in the previous session as grain traders liquidated long positions ahead of the weekend.

The market continued to gauge the consequences on grain and oilseed supplies from the conflict between two of the world's biggest exporters.

"There's a big shift in money flow ahead of the weekend," said Karl Setzer, market analyst with Agrivisor.

"We got into overbought territory on the charts and posted a big correction. Throw in the uncertainty about how long exports will be disrupted, and that's why we're seeing this profit-taking and weak longs getting flushed out," he said.

Missiles pounded the Ukrainian capital Kyiv on Friday as Russian forces pressed their advance.

Moscow's invasion led Ukraine to close its ports while Russia halted commercial shipping in the Azov Sea, raising the prospect of importers having to find alternative supply sources.

Russia and Ukraine account for 29% of global wheat exports, 19% of corn exports and 80% of sunflower oil exports.

Traders are looking for alternative sources of grain as the invasion cuts off Ukrainian supplies. Romanian and French supplies are being used to cover some nearby loadings, traders said Friday.

Chicago Board of Trade May soft red winter wheat dropped to $8.59-3/4 a bushel by 11:50 a.m. CST (1650 GMT), down the expanded 75-cent daily trading limit, after earlier touching a 13-1/2-year high for a most-active contract. May K.C. hard red winter wheat also fell by the 75-cent limit.

May corn shed 33-1/2 cents to $6.56-3/4 a bushel and May soybeans fell 66-1/2 cents to $15.87-1/2 a bushel.

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