GRAINS-Corn extends 2-day losses of 5 pct on USDA forecast
* Corn slides 1 percent, front-month contract hits 5-mth low * USDA pegs corn stocks above market expectations * Soybeans hit fresh contract low on USDA estimates By Colin Packham SYDNEY, July 1 (Reuters) - U.S. corn futures fell nearly 1 percent on Tuesday to hit a fresh five-month low and extending two-day losses to nearly 5 percent after the U.S. Department of Agriculture surpassed market expectations with projections for ample supplies. Wheat fell, while soybeans fell nearly 0.5 percent to a near four-month low, as the USDA surprised the market with record production estimates. Chicago Board of Trade front-month corn futures fell 0.88 percent to $4.20-1/2 a bushel, the lowest since January 21. September corn futures, the most actively traded contract, fell 0.9 percent to $4.15 a bushel, hitting a fresh contract low. "The USDA report from last night continues to weigh," said Paul Deane, senior agricultural economist, ANZ Bank. "There will be funds trying to close positions and limit losses." The U.S. Department of Agriculture said U.S. corn stocks as of June 1 were 3.85 billion bushels, up 39 percent from a year ago, and above the trade guess of 3.72 billion. Corn planting was seen at 91.6 million acres, implying a crop of almost 13.9 billion bushels, just below the record, using a projected yield of 165.3 bushels per acre. Adding to pressure, analysts said, was confirmation that recent wet weather across the key growing conditions aided crops. U.S. corn crop improved and soybean ratings held steady at their highest in 20 years due to warm temperatures and rain in key production areas of the Midwest, the U.S. government said on Monday. Ratings for corn topped analysts' expectations while soybean ratings were in line with market forecasts. November soybean futures fell 0.45 percent to $11.52 a bushel, just above the session low of $11.48-1/2 a bushel, the lowest since March 3. Soybeans closed down 5.8 percent on Monday, the biggest single session loss ever for the contract. Dalian Commodity Exchange January soybean futures fell nearly 3 percent on the USDA forecast. USDA reported June 1 soybean stocks at 405 million bushels, above the average trade estimate of 378 million. USDA forecast soybean plantings up 11 percent on the year to a record high 84.8 million acres. Projected harvested acreage will be a record by more than 7.4 million acres. September wheat futures fell 0.22 percent to $5.76-1/4 a bushel, having closed down 2.7 percent on Monday. Grains prices at 0321 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 576.25 -1.25 -0.22% -2.95% 609.47 28 CBOT corn 420.50 -3.75 -0.88% -5.08% 452.69 21 CBOT soy 1152.00 -5.25 -0.45% -6.19% 1257.23 33 CBOT rice $13.53 -$0.04 -0.29% -0.18% $13.77 49 WTI crude $105.60 $0.23 +0.22% -0.13% $104.71 47 Currencies Euro/dlr $1.369 $0.000 -0.03% +0.29% USD/AUD 0.941 -0.002 -0.19% -0.07% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Colin Packham; Editing by Michael Perry)
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