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GRAINS-Corn retreats from 7-month high as sentiment sours on mounting trade war fears

war fears@

* Market spooked as U.S. Secretary of State fired

* Soybeans fall as China may switch to S. American supplies

* Wheat falls, extends losses into second session

SYDNEY, March 14 (Reuters) - U.S. corn futures fell on Wednesday, retreating from a seven-month high touched in the previous session, as fears mounted about U.S. protectionist trade policies with the firing of U.S. Secretary of State Rex Tillerson. Soybeans edged lower, under additional pressure from the threat of China switching demand to South America sellers, while wheat also ticked lower. The most active corn futures on the Chicago Board Of Trade fell 0.4 percent to $3.84-3/4 a bushel by 0212 GMT, having firmed 0.3 percent on Tuesday when prices hit $3.95-1/4 a bushel, the highest since July 2017. "Market sentiment has soured amid fears of potential widening of U.S. tariffs and the departure of Tillerson," said one Melbourne-based grains trader, who declined to be named as he is not authorized to the talk to the media. U.S. President Donald Trump on Tuesday fired Tillerson, widely seen as a moderate, replacing him with loyalist CIA Director Mike Pompeo, igniting fears of potential geopolitical instability. Corn had previously found support amid rising demand for U.S. supplies. South Korean importers bought over 1 million tonnes of corn in the past week, much of it from the United States, European traders said. The U.S. Department of Agriculture separately announced a sale of 210,000 tonnes to South Korea of corn that could be U.S. grain or shipped from another country. The most active wheat futures were down 0.4 percent at $4.84-3/4 a bushel after closing down 1 percent in the previous session. The most active soybean futures were down 0.1 percent at $10.47-3/4 a bushel after closing up 0.7 percent in the previous session. Despite edging lower, soybean continue to draw support from fears around production in Argentina.

Grains prices at 0212 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 484.75 -1.75 -0.36% -1.22% 478.38 52 CBOT corn 390.00 -1.75 -0.45% -0.19% 378.49 74 CBOT soy 1047.75 -1.00 -0.10% +0.65% 1033.81 49 CBOT rice 12.32 $0.04 +0.37% +0.08% $12.42 39 WTI crude 60.79 $0.08 +0.13% -0.93% $61.99 40

Currencies

Euro/dlr $1.240 $0.001 +0.10% +0.57% USD/AUD 0.7867 0.001 +0.13% -0.06%

Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential

(Reporting by Colin Packham; Editing by Sunil Nair)