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GRAINS-Corn falls 1 pct; wheat, soybean rally stalls

Rod Nickel
Tuesday, 26 Nov 2013 | 10:47 AM ET

* Soybeans dip from two-month top on profit-taking

* U.S. corn harvest now 95 percent complete

* USDA reports fresh soybean sale, China cancellation

(Adds quotes, updates prices, previous dateline LONDON) WINNIPEG, Manitoba, Nov 26 (Reuters) - U.S. grains and soybeans slipped on Tuesday, led by corn, as investors banked profits from recent gains. Chicago Board of Trade wheat and soybeans have closed higher in three straight sessions, lifted by strong export prospects. Corn lost 1 percent as the previous day's short-covering by funds dried up, leaving few supportive factors to offset big global supplies of the golden grain, said Bill Gary, president of Commodity Information Systems in Oklahoma City. "The world is just overrun with corn this year," he said. The U.S. corn harvest was 95 percent complete by Sunday, the U.S. Department of Agriculture said after markets closed on Monday, ahead of the five-year average of 91 percent for this point in the year and in line with trade expectations. U.S. corn production will set a record high of 13.989 billion bushels this year, exceeding last year's drought-shortened harvest by 30 percent, the USDA said on Nov. 8. CBOT December corn futures shed 1 percent, or 4-1/4 cents, at $4.20-1/2 a bushel at 9:22 a.m. CST (1522 GMT). Chicago Board Of Trade January soybeans dipped 0.7 percent, or 8-3/4 cents, to $13.20-1/2 a bushel, drifting off Monday's two-month high of $13.34-1/2. On Tuesday, the USDA reported the sale of 360,000 tonnes of U.S. soybeans to unknown destinations for delivery during the 2013/14 marketing year. It also reported the cancellation of 300,000 tonnes of U.S. soybeans previously sold to China for 2013/14. The cancellation may have whipped up doubts about the strength of Chinese demand, just as South American farmers plant their own soybean crops that will compete with U.S. supplies, Gary said. "We believe that China has really overbought these beans," he said. China is the world's top soybean importer. The U.S. Department of Agriculture said on Monday that exporters had sold 120,000 tonnes of U.S. soybeans to unknown destinations for 2014/15 delivery. That was on top of sales confirmed by the USDA on Friday of 115,000 tonnes of U.S. soybeans to China. "Nearby beans have moved around 60 cents higher in the last three sessions, so it is not surprising to see some profit being taken," said Brett Cooper, senior markets manager at INTL FCStone Australia. "The issue with soybeans is that the U.S. needs to control its export pace until the South American harvest." CBOT December wheat was off 0.8 percent, or 5-1/2 cents, at $6.47 a bushel. The front month rose to a two-week high of $6.55 on Monday, helped by worries about harvests in Argentina and Australia that could bolster demand for U.S. wheat. The USDA, in its weekly crop report on Monday, said 62 percent of the wheat crop was in good to excellent condition, down from 63 percent a week ago and in line with expectations.

Prices at 9:22 a.m. CST (1522 GMT)

LAST NET PCT YTD CHG CHG CHG CBOT corn 420.50 -4.25 -1.0% -39.8% CBOT soy 1320.50 -8.75 -0.7% -6.9% CBOT meal 437.60 0.40 0.1% 4.0% CBOT soyoil 40.55 -0.11 -0.3% -17.5% CBOT wheat 647.00 -5.50 -0.8% -16.8% CBOT rice 1574.00 -6.50 -0.4% 5.9% EU wheat 205.75 -1.50 -0.7% -17.8% US crude 94.14 0.05 0.1% 2.5% Dow Jones 16,094 21 0.1% 22.8% Gold 1245.69 -6.52 -0.5% -25.6% Euro/dollar 1.3543 0.0028 0.2% 2.6% Dollar Index 80.7980 -0.1220 -0.2% 1.3% Baltic Freight 1512 20 1.3% 116.3%

(Additional reporting by Mark Weinraub in Chicago, Nigel Hunt in London and Naveen Thukral in Singapore; Editing by Jane Baird and John Wallace)