GRAINS-Wheat extends fall after surprise hike in Russian crop view, corn up

* U.S. forecasts corn harvest as second biggest in history

* Surprise increase in Russian wheat output after drought

* China's soybean futures under pressure amid trade talks

(Recasts with details price updates, details, new dateline) PARIS/SINGAPORE, Sept 13 (Reuters) - Wheat extended losses on Thursday after the U.S. Department of Agriculture unexpectedly raised Russia's harvest outlook while soybeans remained pressured by a hike in U.S. production due to all-time high yields. Corn edged higher as the market took a breather after the biggest one-day decline in more than a year, although it remained under pressure from a crop report that pegged U.S. output above market expectations. The most-active wheat contract on the Chicago Board of Trade fell 0.5 percent to $5.04-1/4 a bushel by 1122 GMT, having closed down 2.3 percent on Wednesday. Corn rose 0.35 percent to $3.53-3/4 a bushel after closing down 3.9 percent in the previous session, the biggest one-day loss since August 2017, while soybeans gave up 0.4 percent to $8.36-3/4, having firmed 1 percent the day before. "Higher Russian wheat output is bit of a surprise given the dry weather they had during the growing period," said Phin Ziebell, an agribusiness economist with National Australia Bank. "U.S. corn and soybean crops seem to be doing really well." The U.S. Department of Agriculture (USDA), in its monthly supply and demand report, increased its forecast for the Russian wheat harvest to 71 million tonnes, up from a previous estimate of 68 million tonnes, when many traders expected lower output amid a European drought that has stoked fears of export curbs. Dry weather in some Russian regions is still posing a risk to next year's grain crop, analysts and an industry group said. The USDA pegged the 2018/19 corn harvest at 14.827 billion bushels, which would be the second biggest ever. The agency also estimated U.S. soybean output at a record-high 4.693 billion bushels. But the focus on the soybean market remained on trade talks between Washington and Beijing. "The market is closely watching U.S.-China trade talks and any positive development will be supportive for U.S. soybeans and bearish for Chinese market," Ziebell said. China's Dalian soybean futures slid almost 2 percent and soymeal gave up 2.5 percent. China's Ministry of Agriculture and Rural Affairs slashed its forecast for 2018/19 soybean imports as farmers reduce their use of the bean in animal feed because of the trade conflict with the United States. Argentina's soy harvest is expected to reach 50 million tonnes during the 2018/19 season, while estimates for corn production fell to 43 million tonnes, down from around 45 million tonnes previously, the Rosario grains exchange said on Wednesday. In Europe, Consultancy Strategie Grains cut its outlook for production in the European Union by nearly 5 percent this month as crop conditions continued to deteriorate over the summer due to hot and dry weather in France and central Europe.

Prices at 1122 GMT

Last Change Pct End Ytd Move 2017 Pct


CBOT wheat Dec 504.25 -2.50 -0.49 427.00 18.09 CBOT corn Dec 353.75 1.25 0.35 350.75 0.86 CBOT soy Dec 836.75 -3.25 -0.39 951.75 -12.08 Paris wheat Dec 197.00 -2.50 -1.25 162.50 21.23 Paris maize Nov 175.00 -2.50 -1.41 163.50 7.03 Paris rape Aug 367.50 -0.50 -0.14 347.75 5.68 WTI crude oil 69.40 -0.97 -1.38 60.42 14.86 Euro/dlr 1.16 0.00 0.03

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

(Reporting by Naveen Thukral and Sybille de La Hamaide; Editing