GRAINS-Corn edges up, record U.S. crop outlook curbs rise
* Corn up 0.34 pct after falling 3.6 pct in pvs session
* Outlook of record U.S. harvest weighs on corn
* Wheat down on quality, quantity expectation for crop
(Adds quotes, updates prices, previous SINGAPORE)
MILAN, Aug 14 (Reuters) - Corn on the Chicago Board of Trade (CBOT) edged higher on Wednesday, recouping some of the previous session's steep losses, but prices remained under pressure on expectation of a record U.S. crop.
The corn market is torn between higher yield estimates by private forecasters and an outlook for lower yields from the U.S. Department of Agriculture (USDA).
The USDA cut its production forecast instead of increasing it, as most traders had expected, although it is still expecting a record crop and a near-tripling of stocks by the end of next season.
December corn was treading water most of the session and added 0.34 percent to $4.48-3/4 a bushel by 1115 GMT, recouping some of the losses from Tuesday when it plunged more than 3 percent to $4.45-3/4, nearly a three-year low.
"The market digests the USDA report with estimates of corn yield that are controversial," French consultancy Agritel said in a note. "Most of the operators were expecting the yield to increase in the report."
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.
"There is enough uncertainty to keep corn prices hovering around $4.50 levels for the time being," said one Melbourne-based analyst. "I don't think we are going to see $4 corn until we see an official revision of higher yields."
Warmer weather forecast for the Midwest next week should help accelerate crop development. Spotty rains were a concern, but an updated forecast suggested that western Iowa, one of the driest areas of the corn belt this summer, may receive beneficial rains in the coming days.
"Weather risks still pervade both corn and soybeans," Societe Generale said in a note. "Warmer, but wetter, weather is still essential to help the crop development, particularly in states like Iowa where the most concern lays."
The USDA's ultimate adjustments to its yield outlook will be primarily driven by weather developments over the next four weeks, a trader added.
CBOT November soybean futures retreated from near three-week highs reached the previous session on concerns over supplies and fell 1 percent to $12.15-1/2 a bushel.
Wheat futures retreated on an improving harvest outlook, especially in Europe.
September wheat shed 1-1/2 cent or 0.24 percent to $6.26-3/4 a bushel, after hitting a contract low of $6.25-1/4 earlier in the session, while November wheat in Paris was down 0.95 percent to 182 euros a tonne.
"As the harvest continues to roll in in Poland and Germany, we are seeing excellent quality which represents what we are seeing across the board here in Europe," said Jaime Nolan-Miralles, commodity risk manager at INTL FCStone.
"We are seeing good quantity, good quality going through in Europe and the overall picture remains positive, so the fundamentals are the prevailing driver here on price."
(Additional reporting by Naveen Thukral in Singapore; editing by Keiron Henderson)