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GRAINS-Soybeans at 2 month-low on poor Chinese demand, USDA report eyed

* Soybeans at lowest since July 16 on hopes of record U.S. crop * China's slash in 2018/19 soybean import forecast also weighs * Wheat loses more ground on lack of demand for U.S. supply (Updates prices, adds details, quote, changes dateline/byline) By Sybille de La Hamaide and Naveen Thukral PARIS/SINGAPORE, Sept 12 (Reuters) - Chicago soybean futures eased for a second session on Wednesday, dropping to their lowest is nearly two months as poor Chinese demand and expectations of a bumper U.S. crop weighed on prices. Wheat recouped some of last session's steep losses which were triggered by a lack of demand for U.S. cargoes and selling by investors. The Chicago Board of Trade most-active soybean contract lost 0.5 percent to $8.27-1/4 a bushel by 1115 GMT, after earlier touching its lowest since July 16 at $8.26-1/2 a bushel. Wheat added 0.9 percent to $5.23-3/4 a bushel, after ending down 1.8 percent on Tuesday, and corn fell 0.3 percent to $3.65-3/4 a bushel, having closed the previous session down 0.3 percent. China on Wednesday slashed its forecast for 2018/19 soybean imports as farmers reduce their use of the bean in animal feed because of the Sino-U.S. trade conflict. "On the demand side, lower imports by China – the leading importer – are pressuring prices," Commerzbank said in a note, citing the ministry of agriculture's latest estimates. "The decline in imports from the U.S. due to the trade conflict will be partly offset by Brazil ... However, the recipe for feed production in China has already been adjusted to a lower soy content," it said. Brazil's government on Tuesday raised by 2 million tonnes its projection for soybean exports in the 2017/18 crop to 76 million tonnes amid strong Chinese demand, reducing the crop's end-stocks to the lowest on record. Traders are also awaiting the U.S. Department of Agriculture's latest estimates later on Wednesday for the size of the upcoming U.S. corn and soybean harvests. Analysts are expecting the USDA to trim its estimate of U.S. corn yields, but the harvest outlook will still forecast a record crop. The agency is likely to raise its outlook for soybean production. The market is also watching a powerful Hurricane Florence which crept closer to the southeastern United States on Tuesday. Farmers in North Carolina are rushing to harvest corn and tobacco and stock up on pig rations, while the danger of deadly flooding threatened a state where millions of farm animals are housed. Egypt, the world's top buyer of wheat, issued a tender for fresh supplies with results awaited later in the day. Russia has consistently won Egypt's business in recent weeks. Ukraine increased its 2018 grain harvest forecast to 63.1 million tonnes from a previous estimate of at least 60 million, the acting agriculture minister said on Tuesday. The country expects grain exports to rise to 42 million tonnes in the 2018/19 marketing year. Commodity funds were net sellers of CBOT soybean, wheat, corn, soymeal and soyoil futures contracts on Tuesday, traders said. Prices at 1124 GMT Last Change Pct End Ytd Move 2017 Pct Move CBOT wheat Dec 523.75 5.00 0.96 427.00 22.66 CBOT corn Dec 365.75 -1.00 -0.27 350.75 4.28 CBOT soy Dec 827.25 -4.50 -0.54 951.75 -13.08 Paris wheat Dec 203.25 2.00 0.99 162.50 25.08 Paris maize Nov 179.75 0.75 0.42 163.50 9.94 Paris rape Aug 367.75 -4.25 -1.14 347.75 5.75 WTI crude oil 69.87 0.62 0.90 60.42 15.64 Euro/dlr 1.16 0.00 -0.21 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne (Reporting by Naveen Thukral; Editing by Amrutha Gayathri and David Evans)

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