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332269

GRAINS-Soy dives on China's economic uncertainty

* Soybean prices fall after People's Bank of China cuts interest rates

* Forecasts of improved crop weather this week add pressure

* Grains weighed by improved outlook for Ukraine exports (Updates with closing prices, adds export data, crop progress update)

By Christopher Walljasper

CHICAGO, Aug 15 (Reuters) - Chicago soybeans fell on Monday, pressured by forecasts for beneficial rainfall in parts of the U.S. Midwest and unexpected data from China that suggested declining demand for U.S. agricultural commodities from the country.

The People's Bank of China cut key interest rates on weaker-than-expected economic data from the world's second-largest economy, raising concerns of a global recession.

U.S. weather forecasts for rain in the coming weeks could aid parched soybean crops, adding pressure to markets.

Corn and wheat prices followed lower.

The most-active soybean contract on the Chicago Board of Trade fell 42 cents to $14.12-1/4 a bushel, after falling to $13.86 earlier in the session, its lowest since Aug. 4.

The most active CBOT corn contract fell 14 cents to $6.28-1/4 a bushel, while CBOT wheat lost 4-3/4 cents to $8.17-3/4 a bushel.

A contraction of China's economy, the largest buyer of U.S. soybeans, could curb demand for U.S. commodities, said Arlan Suderman, chief commodities economist at StoneX.

"China's been talking down their demand," he said. "I don't think it's as poor as what they indicate."

Meanwhile, U.S. exporters prepared 744,571 tonnes of soybeans for inspection during the week ended Aug. 11, down 14.55% from the week prior, according to the U.S. Department of Agriculture.

Corn export inspections were down 3.1% and wheat exports fell 41.29%, the USDA said.

Corn and wheat futures were also pressured by fears of cutbacks in China, though recent heat across the U.S. Midwest may have reduced yield for developing corn crops.

"There is some rain around in the drier areas of the cornbelt. On the corn, it's probably too late to do any good, but certainly some rain would be helpful to the bean yield," said Chuck Shelby, president of Risk Management Commodities.

U.S. corn crop conditions beat analysts' consensus expectation of 53%, with the USDA rating 57% of the crop as good-to-excellent as of Aug. 14. Soybeans were rated 58% good-to-excellent, in line with analysts' estimates, while spring wheat was pegged at 64% good-to-excellent, one percentage point higher than estimates. (Reporting by Christopher Walljasper Additional reporting by Nigel Hunt Editing by Mark Potter and Richard Chang)

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