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GRAINS-Corn back to 7-month low, wheat pares gains

(Updates prices, changes dateline/byline)

* Corn down as rainfall eases damage concerns

* Wheat down after three firm sessions

* Soybeans nearly unchanged

SYDNEY/PARIS, Aug 28 (Reuters) - U.S. corn fell on Monday to around the seven-month low reached in the previous session, as welcome rainfall eased concerns over widespread production losses. Wheat was also weaker, while soybeans were nearly flat. The most active corn futures on the Chicago Board Of Trade were down 0.1 percent at $3.53 a bushel by 1107 GMT, after falling to $3.52-1/2 a bushel earlier in the session, a level first hit on Friday, which was the lowest since Jan. 11. With the sustained dry weather, traders had built positions in the expectation of significant production losses. But while private forecasters expect production to fall short of official estimates, fears of widespread losses have largely eased. Pro Farmer predicted the U.S. corn harvest at 13.953 billion bushels. Pro Farmer's corn and soy forecasts were both below the U.S. Department of Agriculture's outlooks from Aug. 10.

Corn prices had risen to as much as $3.55 a bushel in Asian trade, supported by a weaker dollar. "A weakening U.S. dollar will help. But that must translate into export sales at some point. Only that can arrest the decline," said Tobin Gorey, director of agricultural strategy, at the Commonwealth Bank of Australia. The most active wheat futures were down almost 1 percent at $4.31-1/4 a bushel, having closed up 0.2 percent on Friday. The most active soybean futures contract was little changed at $9.44-1/4 a bushel, having closed down 0.2 percent on Friday. U.S. Commodity Futures Trading Commission data showed speculative investors increased their net short, or bearish, positions in corn, soy and wheat in the trading week that ended on Tuesday. Pro Farmer projected a record 2017 U.S. soybean crop of 4.331 billion bushels, based in part on the crop tour, but said U.S. soybean production could still fall short of government forecasts.

Prices at 1107 GMT

Last Change Pct End Ytd Move 2016 Pct

Move

CBOT wheat Mar 431.25 -4.00 -0.92 408.00 5.70 CBOT corn Mar 353.00 -0.50 -0.14 352.00 0.28 CBOT soy Mar 944.25 -0.25 -0.03 1004.00 -5.95 Paris wheat Dec 159.50 -1.50 -0.93 175.00 -8.86 Paris maize Nov 159.00 -0.75 -0.47 170.00 -6.47 Paris rape Aug 369.50 -1.00 -0.27 380.25 -2.83 WTI crude oil 47.38 -0.49 -1.02 53.72 -11.80 Euro/dlr 1.19 0.00 0.08

Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne

(Reporting by Colin Packham; Editing by Richard Pullin and Louise Heavens)