GRAINS-US soybeans extend rebound to new 1-week high
* Soy buoyed by export demand, expected USDA forecast cut
* New-crop soy recovering from 14-month low this week
* New-crop corn hovers close to near 3-year low
* Bumper U.S. crop outlook continues to weigh
(Writes through after European trading, changes byline/dateline) PARIS/SINGAPORE, Aug 9 (Reuters) - U.S. new-crop soybeans extended gains on Friday to hit a fresh one-week high as Chinese-driven export demand and expectations of a cut to the U.S. harvest outlook helped the market recover from a one-year low earlier this week. Corn edged down as a slight rebound since the previous session stalled, with prices still curbed by favourable crop weather that is reinforcing the prospect of a record U.S. harvest this year. Chicago Board of Trade November soybeans gained 0.65 percent to $11.92 a bushel by 1235 GMT, after earlier reaching its highest since Aug. 2 at $11.94. The gains have helped the contract pull away from a 14-month low struck on Wednesday. The rebound has been supported by a trade consensus that the U.S. Department of Agriculture will trim its estimate for this year's U.S. soybean harvest in a monthly crop report on Monday, even if this would still be a record level. "The USDA is likely to reduce its soybean crop estimate, so investors are covering short positions ahead of the report," said Kaname Gokon, deputy general manager at Tokyo-based Okato Shoji Co. Soybeans have also found impetus in export demand, with top buyer China reporting record-high imports for July and weekly new-crop export sales on Thursday above expectations. Like other commodity markets, soy was also buoyed by better-than-expected Chinese trade data on Thursday, which spurred hopes that the world's second-largest economy is emerging from a period of slowing growth. Soybean and corn prices have sunk in the past month as crop-friendly growing weather has underscored the potential for bumper harvests. Moderate U.S. temperatures for the next couple of weeks will aid growth of corn and soybean crops, but lack of rain is becoming an issue, an agricultural meteorologist said on Friday.
Analysts on average expect the USDA to raise its corn production forecast on Monday. The August report is particularly watched as it includes first estimates based on field surveys. An increase to the corn outlook could push prices even lower, though some say market has showed signs of bottoming out. "With the first USDA survey of corn yields due next week, further spot price weakness is likely if yields prove better than our expectation of 157 bushels/acre," JP Morgan analysts said in a note. Private forecaster Lanworth on Friday raised its forecast of the U.S. corn crop while also increasing its soybean view.
CBOT December corn inched down 0.2 percent to $4.59 a bushel, giving up small earlier gains. The contract had touched its lowest level in almost three years on Tuesday. Wheat prices edged higher as the market steadied close to a one-year low hit this week in the run-up to the USDA report. Spot-month wheat rose 0.3 percent to $6.43-1/4 a bushel. Pressure from corn and export competition from Black Sea and Australian suppliers continued to keep a lid on prices.
* Prices as of 1235 GMT
Product Last Change Pct Move CBOT wheat 643.25 2.00 +0.31 CBOT corn 459.00 -0.75 -0.16 CBOT soy 1192.00 7.75 +0.65 Paris wheat 183.75 0.75 +0.41 Paris maize 167.00 0.00 +0.00 Paris rape 364.50 1.75 +0.48 WTI crude oil 103.84 0.44 +0.43 Euro/dlr 1.34 -0.05 * CBOT futures prices are in cents per bushel, Paris futures in
euros per tonne, WTI crude oil in dollars per barrel.
(Editing by Richard Pullin and Keiron Henderson)