* Selling pressure after recent surge
* Corn and soybean prices drop
* Wheat prices remain firm
(Recasts with European trade, adds new comment, changes dateline) HAMBURG, July 11 (Reuters) - U.S. corn eased back from a new one-year high that was hit earlier on Tuesday due to fears hot weather in U.S. grain belts could damage crops. Wheat was still supported by fears of heatwave damage to the U.S. spring wheat crop.
Chicago December corn was down 0.5 percent at
$4.12-1/2 a bushel at 1003 GMT after touching $4.17-1/4, its
highest since June 2016. November soybeans fell 0.7
percent to $10.31-1/2.
Chicago September winter wheat was up 0.1 percent at
$5.49-1/2 a bushel. Minneapolis MGEX September spring wheat rose 0.4 percent to $8.01-1/4 a bushel. Chicago wheat hit a two year-high last week on concern U.S. wheat, especially spring crops, are being damaged by a heatwave.
"Corn, wheat and soybeans are being weakened by some selling pressure today after their recent strong rises," said Stefan Vogel, head of agricultural commodity markets research at Rabobank. "But this seems to be profit taking and the overall fundamental picture has not changed." "The concern remains about hot and dry weather in parts of the U.S. grain belts which could reduce yields. The forecasts are still for hot and dry weather and it is hard to see any reason for major price bearishness today," he said. The U.S. Department of Agriculture (USDA) on Monday rated 35 percent of U.S. spring wheat crop at good to excellent as of July 9, down from 37 percent last week after sustained hot weather. Dealers are also positioning ahead of the USDA world grains and oilseeds supply and demand forecasts on Wednesday following the damaging U.S. weather. "It may be slightly early for substantial changes in the USDA forecasts for U.S corn and soybean yields," Vogel said. "There should however be sizeable downward revisions to wheat production due to acreage and yield losses in the U.S. while also some other key exporting regions have had poor weather including west Europe, Ukraine and Australia," he said. He said he did not expect major changes in the U.S. yield forecasts, adding that the USDA was likely to wait until August supply and demand report before making any changes. "The markets are very nervous about U.S. weather but the situation is by far not as bad as in the crisis year 2012 and if the weather turns around there is still time for a recovery of corn and soybean yields," he said.
(Additional reporting by Colin Packham; Editing by Edmund Blair)