GRAINS-Corn, soy drop on good crop weather ahead of USDA report
* Corn, soybeans sink on ideal crop weather
* Wheat falls for seventh straight session, hits 1-year low
* Trade cautious ahead of USDA report
(Rewrites throughout, updates prices, adds quote, changes dateline from LONDON, changes byline) CHICAGO, June 28 (Reuters) - U.S. corn and soybean futures drifted lower on Friday on a favorable weather outlook for the U.S. Midwest that boosted crop production prospects, as traders squared positions ahead of a U.S. government report due later in the day. Wheat futures on the Chicago Board of Trade (CBOT) fell to a one-year low on harvest pressure, falling for a seventh straight session in the longest losing streak for the spot contract in 3-1/2 years. Volumes were light in cautious trading ahead of the U.S. Agriculture Department's acreage and quarterly U.S. grain stocks reports due at 11:00 a.m. CDT (1600 GMT). Analysts on average expect the USDA to lower its estimate for total corn acreage - because of rains delaying sowing this spring - to 95.313 million acres. That would be down from its March estimate of 97.282 million. USDA was expected to estimate June 1 U.S. corn stocks at 2.845 billion bushels, a 16-year low and almost 10 percent less than a year ago. Soybean stocks were projected at a nine-year low of 442 million bushels, down 34 percent from a year earlier.
"New-crop is definitely suffering here because the weather is good," said Sterling Smith, futures specialist with Citigroup. "There is also nervousness coming into this report that we're going to see some better bean acres, and maybe corn acres not as diminished than we thought." Nearly ideal corn and soybean growing weather is expected in early July in the U.S. Midwest with moderate temperatures and occasional showers likely, an agricultural meteorologist said on Friday. "It looks real good for the next two weeks, there will be regular showers and cooler temperatures in all areas," said Andy Karst, meteorologist for World Weather Inc. CBOT July corn fell 5 cents to $6.62-1/4 a bushel by 10:05 a.m. CDT (1505 GMT), with losses tempered by tight nearby supplies. New-crop December corn fell 11-3/4 cents, or 2.2 percent, to $5.26-3/4 a bushel. July soybeans fell 2-1/2 cents to $15.46 a bushel and new-crop November dropped 12 cents, or 0.9 percent, to $12.63-1/4 a bushel. CBOT July Wheat fell 3-3/4 cents, or 0.6 percent, to $6.59-3/4 a bushel, the lowest level for a spot contract since June 22, 2012. The contract has declined 6.7 percent in its seven-session slide.
Prices at 10:11 a.m. CDT (1511 GMT)
LAST NET PCT YTD CHG CHG CHG CBOT corn 662.00 -5.25 -0.8% -5.2% CBOT soy 1547.00 -1.50 -0.1% 9.0% CBOT meal 478.10 -1.50 -0.3% 13.7% CBOT soyoil 46.26 -0.14 -0.3% -5.9% CBOT wheat 659.50 -4.00 -0.6% -15.2% CBOT rice 1561.50 11.50 0.7% 5.1% EU wheat 195.25 -1.50 -0.8% -22.0% US crude 97.48 0.42 0.4% 6.2% Dow Jones 15,024 -1 0.0% 14.6% Gold 1214.81 15.32 1.3% -27.4% Euro/dollar 1.2996 -0.0039 -0.3% -1.5% Dollar Index 83.2880 0.3860 0.5% 4.4% Baltic Freight 1171 20 1.7% 67.5%
(Additional reporting by Sam Nelson; editing by Jim Marshall)