GRAINS-Corn retreats as record-large U.S. harvest looms
* Corn falls on expected record-large harvest
* Soybeans supported by yield concerns, dry weather
* Wheat eases with sinking corn
(Rewrites throughout, updates prices, changes dateline from LONDON, changes byline) CHICAGO, Aug 13 (Reuters) - U.S. corn futures slid more than 1 percent on Tuesday, surrendering nearly all of the prior day's gains as investors shifted their focus from Monday's shockingly low U.S. government corn yield estimate to its forecast for a record-large harvest and plentiful stockpile next season. Soybeans extended the previous day's gains as yields, downgraded by the U.S. Agriculture Department on Monday, were at risk from dry weather expected around the Midwest over the next few weeks. "There's a prevailing thought that USDA's (corn) production number is probably understated. They had less data to work with this year than in the past because of the delayed development so they had to use some historical assumptions," said Shawn McCambridge, analyst with Jefferies Bache. "The reality is that we have the largest crop in history and an almost 1.9-billion-bushel carryout isn't exactly tight." The USDA on Monday cut its forecast for corn yields to 154.4 bushels per acre from its July estimate of 156.5 bushels, but numerous analysts said the yield would likely be raised when the forecast is updated next month. The U.S. soybean yield was estimated at 42.6 bushels per acre, down from 44.5 bushels. The immaturity of this season's corn crop meant that USDA was unable to weigh many of the ears they were counting so they used a derived weight. Warmer weather forecast for the Midwest next week may also help accelerate crop development, although limited rains could still trim yields. The U.S. Department of Agriculture said 32 percent of the U.S. corn crop was in the dough stage of development as of Sunday, behind the three-year average of 48 percent. Crops in major corn producing states Iowa, Minnesota and Nebraska were among the furthest delayed. Soybeans were also lagging their normal pace of development, with 58 percent of the U.S. crop setting pods as of Sunday, 10 points behind the three-year average, USDA said. Chicago Board of Trade December corn futures dropped 5-3/4 cents, or 1.2 percent, to $4.58-1/4 a bushel by 11:08 a.m. CDT (1608 GMT). CBOT November soybeans added 7-3/4 cents, or 0.6 percent, to a 2-1/2 week high of $12.33 per bushel. CBOT September wheat eased with sinking corn, shedding 2-3/4 cents, or 0.4 percent, to $6.32-1/4 a bushel.
Prices at 11:11 a.m. CDT (1611 GMT)
LAST NET PCT YTD CHG CHG CHG CBOT corn 466.75 -5.25 -1.1% -33.2% CBOT soy 1378.00 4.25 0.3% -2.9% CBOT meal 430.80 5.10 1.2% 2.4% CBOT soyoil 42.69 0.37 0.9% -13.2% CBOT wheat 632.25 -2.75 -0.4% -18.7% CBOT rice 1505.00 3.50 0.2% 1.3% EU wheat 183.75 0.50 0.3% -26.6% US crude 105.74 -0.37 -0.4% 15.2% Dow Jones 15,400 -19 -0.1% 17.5% Gold 1320.16 -15.63 -1.2% -21.2% Euro/dollar 1.3247 -0.0051 -0.4% 0.4% Dollar Index 81.8010 0.4680 0.6% 2.5% Baltic Freight 1007 11 1.1% 44.1%
(Editing by Andrew Hay)