GRAINS-Corn hits 7-year low on record U.S. crop view, ends firm
* USDA projects record U.S. corn, soybean crops
* Bargain buying lifts corn from 7-year lows
* Strong export demand underpins soybeans (New throughout, adds comment, updates prices and market activity, changes byline, changes dateline from previous LONDON)
By Karl Plume
CHICAGO, Aug 12 (Reuters) - U.S. corn futures plunged to a seven-year low on Friday and hit contract lows in all months after a the government forecast a larger-than-expected harvest, but the market ultimately closed firm as the low prices prompted bargain buying.
Soybeans eased as the U.S. Department of Agriculture projected the U.S. crop would be the largest ever harvested. Strong demand, particularly from importers in China, offset much of the pressure.
Wheat recovered from early lows and closed slightly higher on short covering.
"I think that stabbing down into new lows opened the door for a lot of users to do some pricing," said Roy Huckabay, analyst with the Linn Group.
"The guys have been really slow to cover September. On this break, they have not only reached out and covered their short basis, they have covered their short futures too," he said. Continuación...