GRAINS-Corn, soy and wheat extend losses after USDA forecasts

(Updates with closing prices)

* Corn nears 6-month low on USDA stocks data, good weather

* Soy to fresh lows after plantings, stocks top estimates

* Locks on upper Mississippi River close due to flooding

* Wheat down as Egypt buys Romanian, Russian supplies

By Julie Ingwersen

CHICAGO, July 1 (Reuters) – U.S. grain futures extended losses on Tuesday, with corn nearing a six-month low a day after the U.S. Department of Agriculture surpassed market expectations with projections for ample supplies.

At the Chicago Board of Trade, July corn settled down 1-1/2 cents at $4.22-3/4 per bushel, paring losses after falling to $4.16, a contract low and the lowest spot price since Jan. 10.

New-crop November soybeans ended down 9-3/4 cents at $11.47-1/2 a bushel after dipping to $11.32, a 4-1/2 month low.

CBOT wheat followed along, with benchmark September finishing down 5 cents at $5.72-1/2 a bushel.

“The soy complex is seeing mild pressure after yesterday’s Black Monday brought on by a pair of bearish items from the USDA,” Citigroup futures specialist Sterling Smith said in a note to clients.

The USDA on Monday estimated U.S. 2014 soybean plantings at a record 84.8 million acres, topping a range of expectations. USDA’s estimates of June 1 soy and corn stocks also came in above average trade estimates.

In addition, USDA’s weekly crop progress report showed U.S. corn condition ratings improved and soybean ratings were the highest in 20 years.

Weather in the Midwest looks promising, with no sign of stressful heat as the corn crop nears pollination, a crucial growth phase that typically takes place in July. But weather jitters may help underpin prices until the crop is farther along.

“The next item of risk for the corn is pollination and this is preventing further collapse,” Smith said, adding, “however, if this occurs without a hitch, our downside target of $3.80 may have to be adjusted lower.”

Frequent rains this season are seen by analysts as a net positive for crops. But run-off from heavy storms this week forced the closure of 11 locks on the upper Mississippi River, a key artery for shipping grain to the U.S. Gulf Coast.

“This will continue to slow barge shipments, but at present it appears that the market thinks that there is little overall impact on yield and production,” KCG Futures Vice President Helen Pound said in a client note.

Wheat fell amid ample world supplies and strong export competition. Egypt’s state grain buyer bought 240,000 tonnes of Romanian and Russian wheat at an international tender, bypassing offers of U.S. and French grain.

Prices at 3:11 p.m. CDT (2011 GMT)                   
 
                              LAST      NET    PCT    
                                        CHG    CHG  
 CBOT corn                  422.75    -1.50  -0.4%    
 CBOT soy                  1400.00    -0.50   0.0%  
 CBOT meal                  456.10    -2.20  -0.5%   
 CBOT soyoil                 38.87     0.02   0.1%   
 CBOT wheat                 559.75    -5.00  -0.9%  
 
 (Additional reporting by Colin Packham in Sydney and Sybille de
La Hamaide in Paris; editing by William Hardy and Matthew Lewis)

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