GRAINS-Soybeans crumble as China begins cancelling purchases

* More cancellations expected
    * New-crop corn and soy underpinned by wet weather

 (New throughout to reflect shift in market sentiment; adds
fresh analyst quotes, weather details; changes dateline from
    By Sam Nelson
    CHICAGO, May 29 (Reuters) - Chicago Board of Trade (CBOT)
soybean futures fell on Wednesday following news that China, the
world's largest buyer of soybeans, had cancelled an order for
U.S. soy.
    Corn turned mixed, with old-crop falling on spillover
selling from falling soy and on profit-taking. But new-crop
December rose for the fifth day in a row as wet weather hampered
U.S. corn plantings, threatening yield and production prospects. Wheat turned firm on mounting concern that portions of the U.S. wheat crop could be harmed by the persistent rainfall and, in some areas, flooding. At 9:42 a.m. CDT (1442 GMT), CBOT old-crop July soybeans were down 12-3/4 cents per bushel at $14.96-1/2, and new-crop November was down 5-3/4 at $12.82-1/4. Old-crop July corn was down 9 cents per bushel at $$6.57-1/2 and December was up 1/4 cent at $5.51-1/4. CBOT wheat for July delivery was up 2-1/4 cents at $6.96 per bushel. Traders and analysts said the downtrending soybean market was putting a damper on any bullish momentum or buying in the soybean, corn and wheat markets. Private exporters reported the cancellation of sales of 147,000 tonnes of U.S. soybeans to China for delivery this marketing year, the U.S. Department of Agriculture said on Wednesday. USDA data shows 281,849 tonnes in outstanding old-crop (2012/13) soybean sales to China as of May 16, and 718,875 tonnes to unknown buyers, a good share of which is likely intended for China. "We've seen the China cancellation of old-crop beans, and the trade is assuming there will be more now that Brazil is
ramping up sales as their logistics is straightened out," said Mike Zuzolo, analyst for Global Commodity Analytics. Brazil had a bumper soybean crop this season and has been expected to become an active seller of soy to China, but difficulty shipping the soy has been an issue ... until now. Wet weather continues to stymie U.S. farmers' attempts to make rapid progress planting soybeans and finish the remaining corn sowings. "There is still concern about getting corn in the ground in the wet areas. It's raining now and there's more rain in the forecast," said Phyllis Nystrom, grain analyst for CHS Hedging, Minneapolis, Minnesota. Excessive rain late this week will further slow U.S. corn and soybean plantings and there is a risk of additional flooding that could harm crops in low-lying areas, an agricultural meteorologist said on Wednesday. "It will be wettest beginning Thursday, with the heaviest rains in Missouri, Iowa and Illinois," said Don Keeney, a meteorologist for MDA Weather Services. Keeney said there would be widespread rains of more than 1.0 inch, with many areas receiving 2.0 to 3.0 inches or more. It will also rain in the U.S. Central Plains and in the Northern Plains with downpours of 2.0 to 4.0 inches or more on Thursday
and Friday. "Next week there will be more rain in the northwest Midwest but drier in the southern Midwest," Keeney said. U.S. farmers slowed the pace of planting during the past week due to rainy conditions that delayed the tail end of corn seeding and pushed soybean planting to its slowest pace in 17 years, the U.S. Department of Agriculture said in its weekly crop progress report on Tuesday. The slow seeding of both crops has raised concerns about reduced yields at autumn harvest as key phases of crop development will likely be delayed until the heat of the summer. A late planting also increases the possibility of an early frost inflicting further damage on the crops. Prices at 9:51 a.m. CDT (1451 GMT) LAST NET PCT YTD CHG CHG CHG CBOT corn 657.50 -9.00 -1.4% -5.8% CBOT soy 1492.75 -16.50 -1.1% 5.2% CBOT meal 438.50 -3.80 -0.9% 4.3% CBOT soyoil 49.04 -0.49 -1.0% -0.2% CBOT wheat 697.75 4.00 0.6% -10.3% CBOT rice 1535.00 3.00 0.2% 3.3% EU wheat 205.75 0.75 0.4% -17.8% US crude 94.64 -0.37 -0.4% 3.1% Dow Jones 15,248 -162 -1.1% 16.4% Gold 1387.41 7.16 0.5% -17.1% Euro/dollar 1.2955 0.0101 0.8% -1.8% Dollar Index 83.5920 -0.5080 -0.6% 4.8% Baltic Freight 818 -4 -0.5% 17.0% (Additional reporting by Mark Weinraub and Karl Plume in Chicago, Michael Hogan in Hamburg and Naveen Thukral in Singapore)



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