GRAINS-U.S. soybeans, corn fall as weather outlook improves

* Some showers added to the forecast for U.S. Midwest
    * CBOT corn drops 3 percent, soy off 1 percent
    * Wheat pressured by falling corn market

 (Recasts, adds new analyst, closing prices)
    By Mark Weinraub
    CHICAGO, Aug 27 (Reuters) - U.S. corn and soybean futures
fell on Tuesday as forecasts for slightly wetter-than-expected
weather across the U.S. Midwest prompted a round of
profit-taking following sharp gains the previous two sessions,
traders said.
    The weakness spilled over into the wheat market, but
declines were limited by good demand on the export market and
concerns about cold weather damaging the crop in South America. Corn had the biggest loss with the front-month contract shedding 3.1 percent, its biggest decline in two weeks. Soybeans, which were more vulnerable to the scorching temperatures reported across the Midwest, fell nearly 1 percent. "They lowered the temperatures and they added a little bit of rain," Chris Robinson, senior trader and analyst at Top Third Ag Marketing, said of the new weather view. "That is really all it takes. If you get the rain, this crop is going to be in better shape." CBOT September corn was down 16 cents at $4.99-3/4 a bushel, with new-crop December sliding 14-1/4 cents at $4.86-1/4. CBOT September wheat was 4 cents lower at $6.50-3/4 a bushel. CBOT September soybeans were down 13-3/4 cents at $14.14 a bushel. The new-crop November soybean contract was 19 cents lower at $13.70-1/2. Soybeans rallied throughout much of the morning, pushing the new-crop contract to an 11-month high. The market turned lower when the midday updates to the weather models raised the possibility of showers providing relief to the crop in places like Iowa during the next few weeks. The new outlook for the second week of September was of particular interest.
"It scatters showers and thunderstorms more numerously across the Midwest, and there is a substantial cold surge that occurs the eighth through the eleventh," said Drew Lerner, meteorologist at World Weather Inc. The U.S. Agriculture Department's report on Monday afternoon showed that crop yields for both corn and soybeans were at risk of reduction if the weather, which has turned hot and dry during the past month, did not provide some relief, traders said. Good-to-excellent ratings for U.S. soybeans dropped 4 percentage points to 58 percent good to excellent as of Aug. 25. The drop was bigger than analysts expected. Corn ratings were 59 percent good to excellent, USDA said, 2 percentage points lower than a week earlier and in line with market expectations. Prices at 1:56 p.m. CDT (1856 GMT) LAST NET PCT YTD CHG CHG CHG CBOT corn 499.75 -16.00 -3.1% -28.4% CBOT soy 1414.00 -13.75 -1.0% -0.3% CBOT meal 455.90 -2.70 -0.6% 8.4% CBOT soyoil 44.06 -0.38 -0.9% -10.4% CBOT wheat 650.75 -4.00 -0.6% -16.4% CBOT rice 1643.50 19.50 1.2% 10.6% EU wheat 191.75 0.00 0.0% -23.4% US crude 108.98 3.05 2.9% 18.7% Dow Jones 14,813 -133 -0.9% 13.0% Gold 1417.26 12.86 0.9% -15.4% Euro/dollar 1.3386 0.0015 0.1% 1.5% Dollar Index 81.1730 -0.2340 -0.3% 1.8% Baltic Freight 1169 4 0.3% 67.2% In U.S. cents, benchmark contracts, except EU wheat (euros) and
soymeal (dollars). CBOT wheat, corn and soybeans per bushel, rice per hundredweight, soymeal per ton and soyoil per lb. (Additional reporting by Julie Ingwersen; Editing by Bob Burgdorfer and Jim Marshall)

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