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GRAINS-Soy hovers near decade low as U.S.-China trade war escalates

Tom Polansek

* Soybean prices drop to lowest since December 2008

* Trump says in no hurry to sign trade deal with China

* USDA report confirms hefty grain stocks (Updates with U.S. trading; changes byline, dateline, previous PARIS/SINGAPORE)

CHICAGO, May 10 (Reuters) - U.S. soybean futures prices sank to their lowest in more than 10 years for the second consecutive session on Friday as U.S. President Donald Trump said he was in no hurry to sign a deal to end the trade war with Beijing, a dispute that has slashed American shipments of the oilseed to China.

Wheat futures dropped to their lowest price since January 2018 at the Chicago Board of Trade, and corn futures also weakened.

Trump's statement fueled concerns that the U.S.-China trade war will drag on, limiting U.S. soybean exports. China is expected to retaliate against the United States for increasing its tariffs on $200 billion in Chinese goods to 25% from 10% early on Friday.

U.S. farmers had been hoping both sides would reach a deal that would accelerate commodity purchases by China and help reduce large stockpiles of American soy.

The U.S. Department of Agriculture (USDA) on Friday forecast bigger-than-expected domestic supplies of soybeans, corn and wheat, further pressuring the markets.

The USDA is not factoring a resolution to the trade war into its projections, said Dan Cekander, president of DC Analysis.

"They have no idea when there will be an actual agreement and you continue to trade it as if there is not," he said.

The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 2-1/2 cents at $8.10-1/4 a bushel by 12:40 p.m. CDT (1740 GMT). The contract earlier fell to $8.06-1/4, a level not seen since December 2008.

China is the world's top soybean buyer and, until the trade war, bought $12 billion worth of the crop from U.S. farmers each year.

U.S. Agriculture Secretary Sonny Perdue said on Friday Trump had asked him to create a plan to help American farmers cope with the heavy impact of the U.S.-China trade war on agriculture.

CBOT wheat was down 5-1/2 cents at $4.24, while corn slipped 3-1/2 cents to $3.49-3/4 a bushel.

The USDA pegged U.S. corn ending stocks for the 2019-20 crop year at 2.485 billion bushels, which would be the most since 1987-88. It estimated corn production at 15.030 billion bushels, the second biggest ever.

"There is certainly a mountainous amount of stocks expected," said Brian Hoops, president of Midwest Market Solutions.

Additional pressure on prices this week came from weather forecasts calling for drier weather in soggy parts of the U.S. Midwest, where delayed corn planting had supported prices in the past two weeks.

(Additional reporting by Karl Plume in Chicago, Gus Trompiz in Paris and Naveen Thukral in Singapore; editing by Jan Harvey and Steve Orlofsky)