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
HAMBURG/SINGAPORE)
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

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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)