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GRAINS-Corn falls to 2-month lows as big U.S. harvest winds down

* Contract lows in most corn contacts as supplies weigh
* Soybeans turn lower, following corn
* Improving South American weather adds pressure
* Wheat firms on short-covering, softer dollar

(New throughout; updates prices, market activity and comments;
new byline, changes dateline from previous HAMBURG)
By Julie Ingwersen
CHICAGO, Nov 14 (Reuters) - U.S. nearby corn futures
fell to the lowest levels in two months on Tuesday, pressured by
ample supplies from the nearly completed harvest of the
second-largest domestic corn crop on record, traders said.
Soybeans declined as improving crop weather in South America
added to bearish sentiment. But wheat futures firmed.
As of 12:30 p.m. CST (1830 GMT), Chicago Board of Trade
December corn was down 4-3/4 cents at $3.37-1/2 per bushel
after dipping to $3.37-1/4, a contract low and the lowest spot
price on a continuous chart since Sept. 12.
CBOT January soybeans were down 6-1/2 cents at
$9.67-3/4 a bushel while December wheat was up 3-1/4 cents
at $4.27-1/2.
Technical selling in corn accelerated as the December
contract slipped below its previous low of $3.40-3/4,
which was set last week after the U.S. Department of Agriculture
raised its estimate of the U.S. corn yield to 175.4 bushels per
acre, a record high.
The government put corn production at 14.6 billion bushels,
second only to the 2016 crop.
"It's a crop that is bigger than what they thought. The
end-user has his hands in his pockets, and world competition is
still keen. That all adds up," said Don Roose, president of
Iowa-based U.S. Commodities.
The USDA late Monday said the corn harvest was 83 percent
complete and the soybean harvest was 93 percent complete.

Better weather in South America, including beneficial rains
this week in parts of Brazil, bolstered global production
prospects.
"The rains in Mato Grosso yesterday were enough to convince
people that the rest of the Brazilian planting progress will be
wrapped up in the next few weeks ... If soybeans are planted in
timely matter, then the second-crop corn should not have any
issues going into the ground," said Terry Reilly, senior
commodity analyst with Futures International.
However, mostly dry conditions were expected next week in
Argentina's main agricultural area, which could delay soybean
planting.
Broad weakness in commodities added pressure. The 19-market
Thomson Reuters CoreCommodity Index was down 1.3
percent, hitting its lowest since Nov. 3.
CBOT wheat bucked the weak trend, firming on technical
buying including short-covering, and a weaker dollar,
which in theory makes U.S. wheat more attractive on the global
market.
"On wheat, export competitiveness will be a critical factor
in the near future, especially between the U.S. and the Black
Sea region before the Black Sea slows down for the winter," said
Graydon Chong, senior commodity analyst with Rabobank.

CBOT prices as of 12:31 p.m. CST (1831 GMT):
Net Pct Volume
Last change change
CBOT wheat WZ7 427.50 3.25 0.8 74787
CBOT corn CZ7 337.50 -4.75 -1.4 174517
CBOT soybeans SF8 968.00 -6.25 -0.6 79589
CBOT soymeal SMZ7 309.90 -1.40 -0.5 42650
CBOT soyoil BOZ7 34.10 -0.23 -0.7 41950
NOTE: CBOT December wheat, December corn and January
soybeans shown in cents per bushel, December soymeal in dollars
per short ton and December soyoil in cents per lb.

(Additional reporting by Michael Hogan in Hamburg and Naveen
Thukral in Singapore, editing by Hugh Lawson and David Gregorio)

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