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GRAINS-Corn futures slide by daily limit as U.S. crop weather improves

(Adds closing prices, USDA crop ratings)

* CBOT corn falls by 40-cent limit

* Market retreats from rallies last week

* Crops expected to benefit from wetter weather

* USDA keeps good-excellent corn rating unchanged

By Tom Polansek

CHICAGO, July 6 (Reuters) - Chicago Board of Trade corn futures sank by the daily limit on Tuesday as forecasts for cooler, wetter U.S. weather eased concerns about unfavorable crop conditions.

Prices pulled back after climbing 12% last week on lower-than-anticipated U.S. plantings estimates from the Department of Agriculture. The estimates made the market more sensitive to dryness in northern and western portions of the U.S. crop belt.

It was difficult for agricultural futures to rally further with largely favorable Midwest weather seen into mid-July, said Rich Feltes, head of market insights for broker RJ O'Brien. The plantings estimates are being overshadowed by the potential for above-average yields across 75% of the U.S. growing area, he said.

The favorable weather, if realized, will benefit the corn crop just as it passes through its key yield-determining stage of pollination.

The USDA, in a weekly report, rated 64% of the crop in good or excellent condition, unchanged from last week and in line with analysts' expectations.

"There is little question over the wetter outlook for this week that is expected to provide beneficial rains to some of the driest areas of Iowa, Minnesota, and the Dakotas, while also reducing heat risks for the region," said Arlan Suderman, chief commodities economist for broker StoneX.

CBOT corn futures dropped by the daily 40-cent limit through the May 2022 contract month, with the most-active December contract finishing at $5.39-3/4 a bushel.

November soybeans fell 94 cents to $13.05 a bushel. December soymeal lost $25.9 to $362.40 a ton, and December soyoil tumbled the 3.5-cent limit to 58.78 cents per lb.

Trading limits will temporarily expand for corn and the soy complex on Wednesday.

CBOT September wheat ended 26-3/4 cents lower at $6.26 a bushel.

The USDA rated 16% of U.S. spring wheat as being in good or excellent condition, down from 20% a week ago and below analysts' expectations.

(Reporting by Tom Polansek in Chicago; Editing by Richard Chang and Matthew Lewis)

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