December 14, 2011 / 1:02 PM / in 6 years

GRAINS-U.S. corn, soy dip on Europe crisis, higher supply

* Corn, wheat off 0.4 pct; soy down 0.6 pct
    * Crude, euro fall on global economy concerns
    * Support eases from dry South American weather

 (Adds Europe details, updates prices)	
    By Martin Roberts and Naveen Thukral	
    MADRID/SINGAPORE, Dec 14 (Reuters) - U.S. corn and soy fell on
Wednesday, giving back gains from the previous session as hopes for plentiful
global grain and oilseed supplies and concerns over Europe's debt crisis weighed
on sentiment.	
    Chicago Board of Trade January soybeans fell 0.63 percent to
$11.11-3/4 a bushel by 1236 GMT. Wheat for March delivery shed 0.37
percent to $5.98-1/4 a bushel and March corn lost 0.34 percent to
$5.92-1/2 a bushel.	
    The euro slipped below $1.30 after Italy had to pay its highest yields since
the common currency was born to sell five-year debt, adding to concerns an EU
summit last week had made little progress in tackling the region's debt crisis.
    Support waned from forecasts for dry weather in South America as analysts
said it was too early to be concerned about possible declines in production.	
    "From a fundamental point, there is talk of weather concerns for South
American corn and soy, but we have not seen any major issues as yet. There is
not lot of game-changing fundamental story around," said Brett Cooper, senior
manager of markets at FCStone Australia.	
    Brent crude oil extended losses to fall $1 on Wednesday as fears
about the outlook for the global economy weighed on demand-sensitive assets and
as investors awaited the conclusion of an OPEC meeting. 	
    U.S. soybean futures had risen on Tuesday as forecasts for poor crop weather
in South America boosted prospects for U.S. supplies on the export market and
provided an opportunity for traders to cover short positions.	
    The La Nina weather pattern is expected to cut rainfall in Argentina's main
grainbelt until January at least, which could  hit yields in the world's
third-biggest soybean exporter, forecasters said. 	
    In the U.S. cash market, corn and soybean spot basis bids were steady to
slightly lower at processors, elevators and  river terminals around the Midwest
on Tuesday, under pressure  from slow domestic and export demand.
    The weaker euro showed signs of boosting European export prospects on
Tuesday when Egypt, the world's largest wheat importer, bought 180,000 tonnes of
Russian, French, Argentine wheat in its latest tender. 	
    January milling wheat traded up 0.41 percent to 181.50 euros ($240) a tonne
on the Euronext exchange in Paris. 	
    "France's win in the Egyptian tender on Tuesday showed the EU is not out of
the export game yet," a European trader said. 	
    U.S. grain and oilseed futures have been under pressure as a result of
higher global supplies forecast by the U.S. Department of Agriculture in its
report on Friday. The USDA unexpectedly raised its estimate for corn supplies
and boosted its stocks forecast for soybeans and wheat more than expected.	
    As a result, Morgan Stanley cut its price forecasts for corn, wheat and
soybeans on Tuesday, but added that it still saw upside potential in view of
relatively low U.S. stocks, especially in corn and soybeans.	
    * Prices at 1240 GMT	
  Product           Last    Change   Pct Move End 2010 Ytd Pct 
  Paris wheat       177.50     0.50    +0.28   252.20   -29.62
  London wheat      143.50     0.40    +0.28   199.00   -27.89
  Paris maize       187.50     1.50    +0.81   235.00   -20.21
  Paris rapeseed    424.75     1.75    +0.41   497.25   -14.58
  CBOT wheat        597.25    -3.25    -0.54   794.25   -24.80
  CBOT corn         591.50    -3.00    -0.50   629.00    -5.96
  CBOT soybeans    1111.00    -7.50    -0.67  1393.75   -20.29
  CBOT rice          13.83    -0.03    -0.18    14.00    -1.21
  Crude oil          108.02    -1.48    -1.35    91.38    18.21
  Euro/dlr            1.30    -0.01    -0.50     1.34    -3.06
  *Front month contracts. CBOT contracts in cents per bushel except rice which
is in dollars per hundredweight. Paris wheat in euros a tonne and London wheat
in pounds per tonne      	
($1 = 0.7641 euros)	
 (Reporting by Martin Roberts, editing by Jane Baird)

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