By Andrew Johnson Jr.
 
   Of DOW JONES NEWSWIRES
 
 
   CHICAGO (Dow Jones)--Chicago Board of Trade soybean futures backpedaled
 Wednesday, falling to their 50-cent-lower daily trading limits, as speculative
 funds continued to lighten their heavy buildup of long positions in the market.
 
   May soybeans settled 50 cents lower at $12.57, July soybeans finished 50
 cents lower at $12.72 and November soybeans ended 50 cents lower at $11.90. May
 soymeal settled $19.80 lower at $330.50 per short ton. May soyoil finished 200
 points lower at 56.40 cents per pound.
 
   May soybeans were synthetically trading between $12.24 and $12.26 on the
 close, traders said. May soyoil was synthetically trading in a range of 55.50
 to 56.25.
 
   The uncertainties of the U.S. economy, the tightening of bank credit for
 hedge funds, weakness in Asian vegoil markets as well as a firmer U.S. dollar,
 served as catalysts to produce broad-based selling across commodities in
 general, analysts said.
 
   Limit-down losses were scored across all major CBOT grain and soy futures
 with sharp losses booked in crude oil and metal markets as well, traders said.
 
   The market is in an area where nothing is going on with planting, growing or
 harvesting of U.S. crops, and that puts increased focus on outside influences,
 particularly with economic jitters filtering through the market place, said Tim
 Hannagan, analyst with Alaron Trading in Chicago.
 
   The fundamentals have taken a back seat, with the liquidation of fund length
 the dominant force until the market gets into a fundamental mindset next week,
 as the trade gears up for the March 31 planting and stocks report, Hannagan
 said.
 
   Looking ahead, the market will remain under the influence of speculative fund
 activity Thursday, and if you see moderating outside markets, soybeans should
 find stability on short covering, Hannagan said. However, if the outside
 markets remain under pressure, soybeans could limp into the extended holiday
 weekend, he added.
 
   On tap Thursday, the U.S. Department of Agriculture is scheduled to release
 its weekly export sales report at 8:30 a.m. EDT. Trade estimates put soybean
 export sales at 200,000 to 450,000 metric tons. Soymeal sales are projected in
 a range of 75,000 to 125,000 metric tons, with soy oil sales expected in a
 5,000- to 20,000-ton range.
 
   In pit trades, JP Morgan bought 1,000 November and Tenco bought 300 May.
 FCStone sold 300 July, and MF Global sold 300 May. Speculative fund selling is
 estimated at 4,000 lots.
 
    SOY PRODUCTS
 
 
   Soy product futures plunged lower, succumbing to speculative long liquidation
 pressure amid broad-based selling from funds across the commodity sector.
 Soyoil futures were the downside leader once again, garnering additional
 pressure from weakness in Asian vegoil markets amid ideas the global vegoil
 rally has shown signs that it has peaked, analysts said. Soymeal futures
 stumbled in tune with the rest of the complex.
 
   May oil share ended at 47.58% and the May crush ended at 47 cents.
 
   In soymeal trades, JP Morgan and Newedge USA each sold 1,000 May. Speculative
 fund selling was estimated at 4,000 lots.
 
   In soyoil trades, buyers and sellers were scattered among various commission
 houses, with speculative fund selling estimated at 2,000 lots.