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GRAINS-U.S. soybean prices drop more than 2 pct to 7-mth low

Emily Chow

* Soybean prices extend losses into seventh session

* Corn, wheat also down around 2 pct (Adds comment, detail)

KUALA LUMPUR, May 6 (Reuters) - Chicago soybean futures on Monday dropped to their lowest in over seven months, extending declines into a seventh session amid expectations that a lack of U.S. corn planting due to delays in rain could fuel a shift to more soybean acreage.

The market's focus was also on the intensifying trade dispute between Washington and Beijing, with U.S. President Donald Trump announcing on Sunday that he would hike U.S. tariffs on $200 billion worth of Chinese goods this week.

The most active soybean futures on the Chicago Board of Trade were down 1.9 percent at $8.26-1/4 a bushel, their lowest since Sept. 19. and on track for a seventh straight session of losses.

The most active corn futures also dropped, declining 2.6 percent to an over one-week low of $3.61-1/4 a bushel.

Corn looked set to snap a rally that had earlier seen eight consecutive sessions of gains on the back of concerns over possible yield declines due to excessive rains and flooding this spring.

"The market's (view on) corn is that last week's news on flooding plains was overblown," said Phin Ziebell, an agribusiness economist at National Australia Bank.

He added that while Trump's comments on hiking U.S. tariffs on Chinese goods were a catalyst for declines in soy prices, "the supply fundamentals are pretty strong".

Soy shed nearly 3 percent last week amid higher U.S. production and slowing demand in top buyer China.

The U.S. Department of Agriculture (USDA) reported last week that a net 336,929 tonnes of U.S. soybeans were sold for export, below trade estimates for at least 400,000 tonnes. Sales of soymeal also fell short of expectations.

Meanwhile, the most active wheat futures also fell 1.7 percent on Monday to a three-session low of $4.30-1/2 a bushel.

More rain is expected around the U.S. Midwest this week, which is likely to keep many farmers sidelined instead of planting corn.

(Reporting by Emily Chow; Editing by Joseph Radford)