GRAINS-Wheat bounces off 4-month low; corn extends slide

* Weather remains beneficial for U.S. corn, soy crops

* Soybean futures rise on supply concerns (Updates with U.S. trading, changes byline and dateline)

By Tom Polansek

CHICAGO, June 25 (Reuters) – U.S. wheat futures edged higher on Wednesday after setting a new four-month low earlier in the day, while corn futures slipped for the third consecutive session on expectations for a bumper U.S. harvest.

Wheat rebounded after crumbling recently under sustained pressure due to the advancing U.S. harvest and amid intense competition for export business. The market shed nearly 4 percent in the previous three sessions.

Corn remained under pressure as warm, wet conditions were seen as beneficial for the U.S. crop.

“Weather forecasts remain nearly ideal,” said Brian Hoops, president of brokerage Midwest Market Solutions.

Front-month wheat futures rose 0.5 percent, or 3 cents, to $5.74 a bushel by 10:40 a.m. CDT (1540 GMT). The contract earlier fell to $5.67-3/4, its lowest since Feb. 7.

Front-month corn futures dipped 0.1 percent, or 1/4 cent, to $4.42-3/4 a bushel after closing down 0.3 percent on Tuesday.

Spot soybean futures added 0.1 percent, or 1 cent, to $14.14-1/2 a bushel on concerns about tight supplies after closing off 0.8 percent in the previous session.

Traders adjusted positions ahead of U.S. Department of Agriculture reports due on Monday that will provide data on plantings and quarterly grain inventories.

The agency will likely report U.S. corn stocks totaled 3.722 billion bushels as of June 1, a four-year high for that date, and soybean stocks came to 378 million bushels, a 37-year low, according to a Reuters survey of analysts.

“Trade focus is starting to shift to next week’s quarterly stocks and acreage report,” Hoops said.

Exporters struck deals to sell 217,400 tonnes of U.S. corn to unknown destinations for delivery in the marketing year that starts on Sept. 1, according to the USDA.

Prices did not rally after the sales were disclosed because the United States will have plenty of corn from the next harvest, traders said.

The markets felt some pressure as China, a major importer, said it would boost domestic grain reserves by 25 million tonnes this year, they added.

Prices at 10:44 a.m. CDT (1544 GMT)                          
                              LAST      NET    PCT     
                                        CHG    CHG     
 CBOT corn                  442.00    -1.00  -0.2%    
 CBOT soy                  1414.50     1.00   0.1%    
 CBOT meal                  449.80     1.40   0.3%    
 CBOT soyoil                 40.73    -0.24  -0.6%    
 CBOT wheat                 574.25     3.25   0.6%   
 (Additional reporting by Colin Packham in Sydney and Sarah
McFarlane in London; Editing by William Hardy and Jeffrey

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