By Tom Polansek
    Of DOW JONES NEWSWIRES
 
 
   CHICAGO (Dow Jones)--Chicago Board of Trade soybean futures closed in
 negative territory Tuesday on profit-taking and forecasts for rain in the
 eastern U.S. corn belt, traders and market analysts said.
 
   July soybeans finished 7 1/4 cents lower at $7.93 1/4 per bushel, and
 November soybeans ended down 7 cents at $8.22 1/4. July soymeal finished down
 $0.70 at $214.80 per short ton, and July soyoil settled down 43 points at 34.83
 cents per pound.
 
   New forecasts from European and American weather models that show
 precipitation headed for parts of the "very dry" eastern corn belt on Sunday
 and Monday were negative for prices, said Tim Hannagan, analyst at Alaron
 Trading in Chicago. Weather is key to the development of the emerging crop, he
 added.
 
   DTN Meteorlogix said the best chance for moisture in the eastern Midwest was
 for up to one-half inch of rain in Illinois and Wisconsin during Wednesday into
 Thursday and again during the Memorial Day weekend. Showers and thundershowers
 will produce up to one-half inch of rain in the region, the weather firm said.
 
   Nationally, 21% of the soybean crop had emerged as of May 20, compared to 16%
 last year and the five-year average of 18%, according to the U.S. Department of
 Agriculture.
 
   Large traders also started taking profits ahead of the Memorial Day weekend,
 Hannagan said. The rain is forecast to fall in the eastern corn belt while
 markets will be closed for the holiday, he noted.
 
   "Really, it was a golden opportunity to take profits off the market,"
 Hannagan said.
 
   In pit trades, Rand Financial bought 500 July, while Tenco sold 300 July.
 Commodity funds sold an estimated 1,000 contracts.
 
   Looking ahead, Hannagan said he expected market participants to take some
 profits on any strength going into the holiday weekend.
 
   Better-than expected planting pace in Monday's USDA crop progress report was
 an underlying bearish factor for soybeans, traders added. The USDA reported 59%
 of the U.S. soybean crop was planted as of May 20, above the 52% planted last
 year and the five-year average of 48%. Trade estimates had called for 50% to
 55% of the crop to be planted.
 
   Steep losses in CBOT corn and wheat also created a negative tone for
 soybeans, a floor analyst said. He noted that soybeans showed some strength
 during the session, trading near unchanged around midday, with support from the
 sentiment that a lot of the summer growing season still lies ahead of the crop,
 he said.
 
   In other news, private exporters reported to the USDA export sales of 500,000
 metric tons of soybeans for delivery to China during the 2007/2008 marketing
 year, the agency said Tuesday. The 2007/2008 marketing year for soybeans began
 September 1.
 
   Officials investigating the purported discovery of Asian soybean rust on crop
 residue from an Iowa grain bin, meanwhile, now say that they doubt the infected
 sample - comprised of but a single leaf - actually originated from within the
 state.
 
   A joint statement released Monday by the Iowa Department of Agriculture and
 Land Stewardship and Iowa State University said experts have found no further
 evidence of Asian soybean rust in the field where the leaf was reported grown,
 or in neighboring fields, as well.
 
    SOY PRODUCTS
 
 
   CBOT soy products futures ended in negative territory as soymeal was unable
 to hold earlier gains from light soymeal/soyoil spreading, traders said. Steep
 losses in CBOT soybeans pulled meal lower, they added.
 
   Weakness in crude oil futures was also seen as negative for soyoil, a floor
 trader noted. Commodity funds bought an estimated 1,000 soymeal and sold an
 estimated 2,000 soyoil.
 
   In soyoil pit trades, Rand Financial sold 1,000 July and 300 December. Fimat,
 Bunge and Tenco each sold 300 July, while Rosenthal bought 300 July. In soymeal
 pit trades, Goldberg Hehmeyer bought 500 July, while Man Financial and
 Shatkin-Arbor each bought 300 July. Bunge sold 300 July.