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GRAINS-Soybeans extend decline on expected rise in U.S. stocks
* Soybeans set for weekly loss as USDA raises stocks forecast
* Global corn stocks soar after China output revision (Adds quote, updates prices)
By Nigel Hunt
LONDON, Nov 9 (Reuters) - Chicago soybean futures fell for a fifth consecutive session on Friday as an increased forecast for U.S. stocks reinforced concerns over how trade conflict with China is damaging the export outlook.
U.S. corn and wheat prices were also lower, weighed down partly the strength of the dollar.
The most active soybean contract on the Chicago Board of Trade fell 0.4 percent to $8.75-3/4 a bushel by 1144 GMT and was on track for a weekly loss of 1.4 percent.
"The United States is struggling to sell soybeans because of the trade war with China. As a result, the USDA has raised its estimate for ending stocks," said National Australia Bank agribusiness economist Phin Ziebell.
The U.S. soybean crop will be smaller than expected but stocks are forecast to rise sharply as the trade conflict with China weighs heavily on exports, the USDA said in its monthly supply and demand report.
CBOT corn prices were also lower, with the most active contract down 0.6 percent at $3.71-1/4 bushel and now on track to be unchanged on the week.
The USDA cut its forecast of U.S. 2018-19 corn ending stocks to 1.736 billion bushels from 1.813 billion bushels in October.
However, it nearly doubled its forecast of 2018-19 world corn ending stocks to 307.51 million tonnes from 159.35 million tonnes last month.
The change reflected a huge increase in the USDA's estimate of Chinese corn stocks after revisions by China's government.
China, the world's second-biggest corn producer, made a sharp upward revision to its corn output data for the past 10 years in a move that is likely to have wide repercussions for global supply and demand scenarios.
"It is not clear what China will do with all the corn – after all, the stocks would cover 75 percent of an entire year’s demand," Commerzbank said in a market note.
"If China decides to export some of the corn, this would put pressure on world market prices. However, the stocks may be revised significantly down again soon if China also upwardly adjusts its demand figures."
CBOT's most active wheat contract fell 1 percent to $5.02-1/2 a bushel and was on track for a weekly loss of 1.2 percent.
December wheat on Paris-based Euronext was unchanged at 200 euros a tonne, underpinned by weakness of the euro against the dollar. (Additional reporting by Naveen Thukral in Singapore Editing by Sherry Jacob-Phillips and David Goodman)
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