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GRAINS-Soybeans sink as USDA cuts U.S. export view amid trade war
* USDA cuts 2018-19 U.S. soy export forecast, raises stocks
* Intensifying U.S.-China trade conflict hit soy, wider markets
* Corn rebounds from contract lows, wheat up after 8 pct drop
* Grain markets await USDA report for U.S. crop revisions (Recasts with USDA crop forecasts, adds analyst quote, updates prices; previous PARIS/SINGAPORE)
By Karl Plume
CHICAGO, July 12 (Reuters) - U.S. soybean futures fell to contract lows on Thursday after the government slashed its U.S. export forecast and projected that American soybean stocks would swell to a historic high next year due to a trade war with China.
Corn rallied from earlier contract lows as the U.S. Department of Agriculture raised its U.S. export forecast enough to offset a larger harvest outlook.
Wheat also jumped after the USDA raised its U.S. wheat export projection and lowered its production forecasts for key European suppliers.
In a monthly supply-and-demand report, the USDA cut its forecast for U.S. soybean exports in the 2018-19 (Sept/Aug) season by 250 million bushels, sending end-of-season stocks to a record 580 million bushels, which topped all trade forecasts.
The agency said the adjustments were triggered by a deepening trade conflict with top importer China, which raised import duties on U.S. soybeans by 25 percent last Friday.
"USDA is clearly indicating that there's going to be a lot of soybeans and that we hurt our demand base, on a worldwide basis," said Jack Scoville, analyst at The Price Group.
China on Thursday cut its forecast for soybean imports in 2018-19 by 1.8 million tonnes to 93.85 million, warning that higher prices due to the trade conflict with the United States would curb demand as farmers switch to alternative animal feed ingredients.
Chicago Board of Trade August soybeans were down 3/4 cent at $8.32-1/4 a bushel by 12:40 p.m. CDT (1740 GMT) while new-crop November soybeans fell 1/2 cent to $8.47-1/2 a bushel. All contracts through January 2020 posted life-of-contract lows.
CBOT September corn gained 6-1/2 cents to $3.46-1/2 a bushel, rebounding from an earlier contract low of $3.37-1/4.
The USDA increased its estimate for U.S. plantings this season, sending production up by 190 million bushels. But the agency more than offset that by lifting its projections for exports and use by the domestic animal-feed sector.
CBOT September wheat jumped 12-3/4 cents to $4.84-1/2 a bushel after a three-day slump had dragged prices to a 5-1/2-month low the previous day.
Wheat has been curbed by favorable weather for spring crops in the northern U.S. Plains, but falling expectations for harvests in Europe and the Black Sea region remain supportive to prices.
The USDA cut its world wheat stocks projection by 5.28 million tonnes on smaller crops in the EU, Australia and the Black Sea region.
(Additional reporting by Gus Trompiz in Paris, Naveen Thukral in Singapore and Michael Hirtzer in Chicago; Editing by Mark Potter and Will Dunham)
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