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GRAINS-Soybeans drop 2%, led by soybean oil; wheat and corn retreat

(Recasts, updates prices, adds quotes, changes byline, changes dateline from previous PARIS/SINGAPORE)

By Julie Ingwersen

CHICAGO, Nov 16 (Reuters) - U.S. soybean futures fell about 2% on Wednesday, anchored by a profit-taking plunge in soyoil futures and outlooks for beneficial rains in Brazil, traders said.

Wheat and corn futures also declined, pressured by optimism about an extension of a Black Sea export deal and as concerns eased that the Ukraine war could escalate after a missile hit Poland.

As of 1:13 p.m. CST (1913 GMT), Chicago Board of Trade January soybeans were down 30 cents at $14.27-1/4 per bushel and December soyoil fell about 3 cents per lb, or 4%.

CBOT December wheat was down 10 cents at $8.18-1/4 a bushel. December corn was down 1-1/4 cents at $6.65-1/2 a bushel, staying inside of Tuesday's trading range.

Soybeans followed as soyoil futures retreated from a five-month high set last week.

"Not anything fundamentally has changed in the bean oil market, but it just got really overdone to the upside. And with the crude oil market down roughly $8 (per barrel) in the last week or so. I think you are seeing profit taking," said Sherman Newlin, an analyst with Risk Management Commodities.

Soyoil sometimes follows trends in crude oil due to its role as a feedstock for biodiesel fuel.

Wheat and corn declined as traders monitored developments in the Black Sea region. A United Nations source on Wednesday said they have reasons to be "cautiously optimistic" on the renewal of the Black Sea grains corridor initiative, which is set to roll over on Saturday unless there are objections.

The U.N.-backed agreement in late July allowed grain shipments to resume from certain Ukrainian ports, leading to some 10 million tonnes in shipments and helping to curb international prices.

"The market is expecting Ukrainian exports to continue as the deal is likely to be extended," said one Singapore-based trader.

Meanwhile, Poland's President Andrzej Duda said on Wednesday the missile that hit Poland killing two people was probably a Ukrainian air defence missile and there was no evidence to suggest the incident was an intentional attack by Russia.

The announcement, which followed similar suggestions by the United States, was likely to ease global concern that the war in Ukraine could spill across the border. (Additional reporting by Naveen Thukral; Editing by Rashmi Aich, Sherry Jacob-Phillips, Elaine Hardcastle and Jane Merriman)

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