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GRAINS-U.S. corn, soybean futures drop on technical setback; wheat rises

(Updates with closing prices)

By Mark Weinraub

CHICAGO, Sept 14 (Reuters) - U.S. soybean and corn futures fell on Wednesday on a round of technical selling as traders adjusted their positions following a market rally sparked by the government's Monday forecast for smaller-than-expected harvests.

"That was a surprising number out of the U.S. Agriculture Department and the market reacted," said Chris Robinson, founder of Robinson Ag Marketing. "We have had these moves that are very violent but they do not last too long. We have had some pretty big spikes up and down."

Wheat was firm, supported by an easing back in the dollar and uncertainty over an export corridor for Ukrainian grain following Moscow's criticism of the arrangement.

Corn and soybean futures also faced pressure from some hedging by commercial traders that made recent purchases in the cash market, Robinson added.

Chicago Board of Trade November soybean futures ended down 23-3/4 cents at $14.55, retreating from gains made in the overnight session after hitting resistance at the high end of its 20-day Bollinger range.

CBOT December corn was 10-1/2 cents lower at $6.82-1/4 a bushel. Resistance was noted at $7.00 a bushel, a level the contract has not traded above since June 22.

Uncertainty about the impact of a U.S. railroads work stoppage added to the overall bearish picture. Some U.S. railroads will halt crop shipments on Thursday.

Traders also noted concerns about a cooling global economy causing investors to exit risky positions in commodities, particularly after a sharp rally. August U.S. inflation figures released on Tuesday fueled bets for higher interest rates.

"Rising inflation, combined with an economic slowdown, has led to fears of a decline in global demand," consultancy Agritel said in a note.

CBOT December soft red winter wheat was up 11-3/4 cents at $8.72-1/4 a bushel. (Reporting by Mark Weinraub; Additional reporting by Gus Trompiz in Paris and Enrico Dela Cruz in Manila; Editing by Subhranshu Sahu, David Evans, Josie Kao and Jonathan Oatis)

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