* Corn falls 2 pct, soy dips from 4-month top
* Planting pace seen slowest since 1996
* Warmer forecast enhances crop growing conditions
* Grain markets eye June 12 USDA monthly forecasts
(Updates prices, adds analyst quotes)
By Michael Hirtzer
CHICAGO, June 10 (Reuters) - U.S. corn futures plunged 2
percent on Monday, the most in about a month, as forecasts for
warmer weather promised good growing conditions in the Midwest
crop belt and snapped a streak of four sessions without a
Wheat and soybean futures followed declines in corn at the
Chicago Board of Trade, with wheat touching a two-week low as
the early U.S. harvest advanced.
"We didn't get as much rain in some of the wettest areas and
the forecast is warmer and drier this week. Consequently, we are
taking some risk premium out of the market," said Don Roose,
analyst at brokerage U.S. Commodities in West Des Moines, Iowa.
Occasional rains this week will delay the final plantings of
this year's corn and soybean crops, but warmer weather in the
U.S. Midwest is expected to boost growth prospects.
"For crops that are in the ground, it's nearly ideal with
plentiful soil moisture and warmer temperatures," said John Dee,
agricultural meteorologist for Global Weather Monitoring.
Analysts polled by Reuters expect the U.S. Agriculture
Department to report the slowest crop seedings since 1996 in a
weekly report due at 3 p.m. CDT (2000 GMT).
The USDA will update global supply and demand forecasts in a
monthly report slated for release on Wednesday.
CBOT July corn futures fell 16-1/4 cents to a one-week
low of $6.50 per bushel, dropping the most since May 15.
New-crop December futures settled 12-1/2 cents, or 2.2
percent, lower at $5.46.
"The weekend was definitely a bit drier than expected," Joel
Widenor, agricultural meteorologist at Commodity Weather Group,
told the Thomson Reuters Global Ags Forum.
Widenor added the southern U.S. Plains wheat belt was likely
to be warm and dry through the end of the month, which should
aid harvest of the crop.
CBOT July wheat finished about 1 percent, or 9-1/4
cents, lower at $6.89-3/4 per bushel after earlier falling to a
session low of $6.80-1/2, a level last seen on May 22.
New-crop November soy ended 11-1/4 cents lower at
$13.19 after climbing last week to its highest level since Feb.
7. Old-crop July soybeans fell 16-1/2 cents to $15.11-3/4.
U.S. wheat prices remained under pressure from slack demand
for U.S. white wheat following the discovery of a genetically
modified wheat strain in Oregon.
"Wheat slipped down in sympathy with the corn and off a bit
of chart selling, with little fresh in the way of export
demand," Charlie Sernatinger, analyst at EDF Man Capital, said
in a note to clients.
Japan, the United States' top white wheat customer, declined
for a second straight week to bid at its weekly tender. South
Korea has formally suspended U.S. wheat purchases, while the
European Union said it would step up testing.
U.S. wheat will be in contention in a tender issued by Iraq
on Sunday that closes later this month.
Prices at 2:33 p.m. CDT (1933 GMT)
LAST NET PCT YTD
CHG CHG CHG
CBOT corn 650.00 -16.25 -2.4% -6.9%
CBOT soy 1511.75 -16.50 -1.1% 6.6%
CBOT meal 448.30 -4.20 -0.9% 6.6%
CBOT soyoil 48.07 -0.46 -1.0% -2.2%
CBOT wheat 689.75 -6.50 -0.9% -11.3%
CBOT rice 1600.00 14.50 0.9% 7.7%
EU wheat 201.50 -2.25 -1.1% -19.5%
US crude 95.77 -0.26 -0.3% 4.3%
Dow Jones 15,249 1 0.0% 16.4%
Gold 1385.25 1.36 0.1% -17.3%
Euro/dollar 1.3256 0.0035 0.3% 0.5%
Dollar Index 81.6610 -0.0080 0.0% 2.4%
Baltic Freight 815 3 0.4% 16.6%
(Additional reporting by Gus Trompiz in Paris and Naveen
Thukral in Singapore; Editing by Anthony Barker, Jim Marshall,
Sofina Mirza-Reid and Steve Orlofsky)