GRAINS-U.S. wheat falls on supply glut, pulls corn lower

* CBOT wheat drops 2.7 percent as losing streak hits sixth day

* Corn off 1.4 percent on wheat decline; planting progress weighs

* Soybeans rise ahead of monthly processor data (Updates with closing prices)

By Mark Weinraub

CHICAGO, May 14 (Reuters) – U.S. wheat futures fell for the sixth day in a row on Wednesday, extending a losing streak during which the benchmark contract has shed 6.6 percent of its value because of ample global stocks and waning demand for U.S. supplies.

Corn also was weak, pressured by the drop in the wheat market as well as active planting of the U.S. crop and technical selling.

Soybeans firmed, closing higher on firm cash markets and bargain buying after an early dip sparked some fund buying, traders said.

Wheat notched the biggest losses, falling 2.6 percent and hitting its lowest in nearly three weeks.

“Wheat is lower across the board as large global supplies are weighing on prices,” said Sterling Smith, futures specialist with Citigroup. “The large gains seen in recent months in the U.S. futures market has priced U.S. wheat out of the market and we are going to need to see a correction to equalize those issues, as global cash prices are not going to climb to meet the board.”

Chicago Board of Trade July soft red winter wheat futures settled down 19 cents at $6.90-1/4 a bushel. The contract fell through key support at its 30-day, 40-day and 50-day moving averages.

CBOT wheat has fallen for six days after hitting a 13-month high of $7.35 on May 6.

CBOT July corn was 7-1/4 cents lower at $4.95-1/2 a bushel, falling below its 50-day moving average and hitting its lowest since April 22.

CBOT July soybeans rose 3 cents to $14.86-3/4 a bushel.

Traders noted positioning ahead of the monthly U.S. report on crush data and oilseed stocks from the National Oilseed Processors Association on Thursday. The report was expected to show that pace of crushing during April crush was the highest for the month in five years.

Prices at 2:40 p.m. CDT (1940 GMT)      
                              LAST      NET    PCT     YTD
                                        CHG    CHG     CHG
 CBOT corn                  495.50    -7.25  -1.4%   17.4%
 CBOT soy                  1486.75     2.25   0.2%   13.3%
 CBOT meal                  486.50     1.80   0.4%   11.1%
 CBOT soyoil                 41.38     0.17   0.4%    6.6%
 CBOT wheat                 690.25   -19.00  -2.7%   14.0%
 CBOT rice                 1528.00    -4.50  -0.3%   -1.5%
 EU wheat                   200.75    -2.75  -1.4%   -3.9%
 
 US crude                   102.12     0.42   0.4%    3.8%
 Dow Jones                  16,603     -113  -0.7%    0.2%
 Gold                      1306.16    13.42   1.0%    8.4%
 Euro/dollar                1.3710   0.0007   0.1%    0.4%
 Dollar Index              80.0610  -0.0820  -0.1%    0.0%
 Baltic Freight               1002       20   2.0%  -56.0%
 
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 in Chicago; editing by
Andrew Hay and Diane Craft)

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