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Expectations of record crop hang over soybean market

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China demand worries offset strong weekly exports, softer

dollar

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Next week's U.S. Midwest crop tour eyed for corn, soy

yields

(Changes byline/dateline, updates headline, updates throughout,

updates prices)

By Heather Schlitz

CHICAGO, Aug 16 (Reuters) -

Chicago Board of Trade soybeans and corn futures eased on

Friday, with both poised to set a weekly loss, as farmers kept

clearing out their grain bins ahead of a U.S. harvest that is

forecast to see massive yields, traders said.

Wheat futures firmed as problems with the French and

German wheat crop, plagued by excess harvest-time rain,

supported prices.

Most-active CBOT wheat ticked up 4-1/4 cents to

$5.32-1/2 a bushel as of 1600 GMT, was corn was last down

2-1/4 cents at $3.94-3/4 a bushel.

Meanwhile, most-active soybean futures were down 7

cents at $9.61 a bushel - and dipped at one point to $9.55 a

bushel, the lowest since September 2, 2020.

U.S. wheat futures have continued to face pressure from

a strong Black Sea wheat crop. However, the French soft wheat

crop, which is expected to be the smallest

since the 1980s

, and a declining German crop have provided a floor under

prices.

All three crops were trading close to their lowest since

2020 against a backdrop of large U.S. supplies and stiff

competition from Brazil and Russia to capture limited demand.

Farmers have been selling off huge volumes of old crop

corn and soybeans to generate much-needed cash flow ahead of the

fall, when property taxes, crop insurance and other bills come

due, traders said. Meanwhile, funds continue to hold large short

positions on U.S. commodities, leaving the market open to short

covering.

"It's a perfect storm for funds," Darin Fessler, trader

at Lakefront Futures and Options, said. "They're thinking about

getting out of their massive shorts while producers are

selling."

Renewed concern about China's economy and weak Chinese

demand for U.S. soy also weighed over U.S. soy futures, traders

said.

"The Chinese economy isn't exactly hunky dory," Fessler

said. "Demand hasn't been great, and it's putting further

pressure on U.S. prices even though U.S. beans are cheap."