* Mkt expects rapid corn planting as dry weather forecast
* Old-crop corn prices supported ahead of next USDA report
later in wk
* Wheat drops despite signs of crop stress in key exporting
By Colin Packham
SYDNEY, May 8 (Reuters) - U.S. new-crop corn futures fell on
Wednesday as expectations for an increase in planting in the
coming days reversed gains from the previous session, though the
overall slow pace of sowing underpinned old-crop prices ahead of
a key U.S. Department of Agriculture supply and demand forecast.
Wheat fell after firming in the previous session, while
soybeans rose for the second day.
The Chicago Board of Trade most-active December corn
contract had dropped 0.37 percent to $5.37-1/4 a bushel by
0350 GMT, after closing little changed on Tuesday.
Old-crop July corn futures climbed 0.2 percent to
$6.41-1/4 a bushel after firming 0.55 percent in the previous
"There will be a window of dry weather in the coming days
where farmers can plant," said Joyce Liu, an analyst at Phillip
Analysts said old-crop prices are being supported by
position-squaring ahead of the next USDA monthly supply and
demand report on May 10.
"We know that corn stocks are pretty tight and with the
delayed planting, we may see stocks drawn down even further,"
July wheat declined 0.14 percent to $7.08 a bushel
after firming 0.9 percent on Tuesday.
July soybeans rose 0.47 percent to $13.88-3/4 a
bushel, having closed up 0.95 percent in the previous session.
Corn and wheat prices continued to be pressured by forecasts
for improved crop weather.
Forecasters said drier weather in the northern Midwest
should help boost seedings that have fallen well behind the
average pace of planting.
U.S. farmers have planted just 12 percent of their intended
corn acres, the slowest pace since 1984, USDA said in a weekly
report on Monday.
Analysts said any delays past mid-May would encourage
farmers to switch corn acreage to soybeans, despite oilseed
planting also falling well behind schedule.
Soybean planting was 2 percent complete by Sunday, tied with
1983 and 1993 for the second-slowest place by early May,
following a 1984 record of 1 percent.
Traders said U.S. spring wheat planting would also be
boosted by improved crop weather, adding pressure to prices,
despite signs of yield losses in major wheat producing
Seedings of spring wheat, most of which is high-quality
milling wheat produced in the northern Plains, continued to lag
due to cold and wet conditions.
Dry weather continues to delay planting in Australia's
eastern grain belt, although output in the key western wheat
region was set to rebound after favorable rain.
Yields of Ukrainian spring barley and spring wheat may fall
as much as 30 percent if no rain falls on dry fields in the next
two weeks, a senior weather forecaster said on Tuesday,
Elsewhere, continued dry weather in Russia's southern crop
growing regions could hurt grain production and yields,
potentially dashing Russia's plans to return as a major wheat
exporter this year, experts said on Monday.
Grains prices at 0348 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 708.00 -1.00 -0.14% +0.75% 705.28 47
CBOT corn 641.25 1.25 +0.20% +0.75% 635.26 51
CBOT soy 1388.75 6.50 +0.47% +1.42% 1360.89 65
CBOT rice $15.45 $0.06 +0.36% -0.39% $15.56 59
WTI crude $95.83 $0.21 +0.22% -0.34% $92.92 63
Euro/dlr $1.309 $0.001 +0.10% +0.12%
USD/AUD 1.018 0.000 -0.01% -0.67%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential