REFILE-GRAINS-Soybean prices fall, extend 2-day losses to more than 1.5 pct

(Corrects headline to remove extraneous word)
    * Soybeans slide as traders ready for USDA report
    * Corn drops for second straight session
    * Wheat firms as Australia trims production estimate

    By Colin Packham
    SYDNEY, Sept 10 (Reuters) - U.S. soybeans fell on Tuesday,
extending their losses this week to more than 1.5 percent, as
traders squared positions ahead of the next U.S. Department of
Agriculture production forecast.
    Corn dropped, while wheat edged marginally higher, drawing
support from a cut to Australia's official output forecast for
the grain.
    Chicago Board of Trade November soybeans fell 0.74
percent to $13.46-1/2 a bushel, having closed down 0.82 percent on Monday. "We are looking at pre-positioning ahead of the USDA report on Thursday so we are likely to see price fluctuations in the next few days," said Luke Mathews, commodities strategist at the Commonwealth Bank of Australia. The USDA is expected to trim its September soybean yield estimate to 41.2 bushels per acre from 42.6 bushels in August, according to a Reuters poll. Soybean prices were also hurt as the USDA reported damage to the oilseed as a result of hot, dry weather last week was slightly less than expected. The USDA pegged the soybean crop as 52 percent good to excellent as of Sept. 8, down 2 percentage points from a week earlier. Analysts had expected soybeans to be rated 51 percent good to excellent, according to the average of 11 estimates in a Reuters poll. Further unfavorable weather is expected, meteorologists said. No widespread rains are expected in dry areas of the Midwest for the next 10 days, Global Weather Monitoring said on Monday. December corn fell 0.38 percent to $4.61-3/4 a bushel, having closed down 1 percent. Fears that the dry weather last week had damaged corn more
than market expectations were allayed when the USDA said the grain was 54 percent good to excellent, down from 56 percent a week ago but in line with expectations. December wheat rose 0.12 percent to $6.42 a bushel, having closed down 1 percent on Monday. Wheat drew support after Australia, the world's second largest exporter, trimmed its projections for 2013/14 output. Australia cut its forecast wheat production by more than 3 percent after dry weather across key growing states, but output is still expected to be its sixth largest on record. Grains prices at 0304 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 642.00 0.75 +0.12% -0.89% 653.42 37 CBOT corn 461.75 -1.75 -0.38% -1.39% 469.65 32 CBOT soy 1346.50 -10.00 -0.74% -1.55% 1281.05 47 CBOT rice $15.27 -$0.07 -0.49% -0.94% $15.35 33 WTI crude $108.63 -$0.89 -0.81% -1.72% $106.83 54 Currencies Euro/dlr $1.326 $0.000 +0.02% +0.59% USD/AUD 0.926 0.004 +0.38% +0.87% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Editing by Joseph Radford)

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