CHICAGO: U.S. soybean futures hit their highest in seven months on Wednesday on technical buying and as soyoil futures rallied with energy markets and historically high palm oil prices.

       Concerns about a reduced South American harvest and exports from top soy supplier Brazil offered further support, with strength spilling over into corn futures.

       Wheat futures fell sharply after two days of strong gains that lifted prices to two-month highs.

       "Soybeans turned higher early and made another leg up. A lot of that was due to sharply higher bean oil, which is following the palm oil," said Terry Reilly, senior commodities analyst with Futures International.

       "Other outside markets are also supporting the bean oil and the soybeans, most notably crude oil," he said.

       Crude oil prices reached their highest since 2014 on Wednesday, providing support to corn and soybeans, both key feedstocks for making biofuel.

       Chicago Board of Trade March soybeans were up 31-3/4 cents at $14.39 a bushel at 12:43 p.m. CST (1843 GMT), the highest for a most-active contract since June 17. All soybean contracts posted fresh life-of-contract highs.

       March corn added 5 cents to $6.25 a bushel, while CBOT March wheat tumbled 24-1/4 cents to $7.93-3/4 a bushel.

       Concerns about tightening global soy supplies limited selling interest in soybeans as traders continue to monitor poor crop weather in parts of South America.

       Safras & Mercado slashed its Brazilian soy exports estimate on Wednesday, while private analytics firm IHS Markit Agribusiness reduced its outlook for U.S. plantings in 2022.

       The market is also watching developments along the Russia-Ukraine border, which could disrupt grain shipments from the major exporting region- Reuters