(Updates for market close)

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Soybeans, corn, wheat eased after quarterly US stocks data

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Looming US government shutdown adds to cautious mood

By Heather Schlitz

CHICAGO, Sept 30 (Reuters) - Chicago soybean, corn and

wheat futures fell on Tuesday on a bearish U.S. Department of

Agriculture quarterly stocks report, U.S. harvest progress and a

lack of Chinese demand.

The USDA's quarterly stocks report, one of the most closely

tracked publications in grain markets, showed U.S. farmers and

grain handlers had 13% less corn in storage ahead of the autumn

harvest than a year earlier, though a record-large crop was set

to replenish inventories.

The USDA said in a quarterly report that there were 1.532

billion bushels of corn in storage as of September 1. That was

above analysts' expectations for 1.337 billion bushels.

"It's the primary reason we're seeing some pressure right

now," said Rich Nelson, strategist at Allendale.

The run-up to a possible U.S. government shutdown from

Wednesday also encouraged caution on grain and wider financial

markets.

The most-active Chicago Board of Trade corn contract

settled 6 cents lower to $4.15-1/2 per bushel, while CBOT wheat

settled 11-1/2 cents lower to $5.08 per bushel. CBOT

soybeans settled down 8-3/4 cents at $10.01-3/4 per

bushel.

A lack of export demand for soybeans has been the primary

factor weighing on soy futures, analysts said.

U.S. soybean exporters are missing out on business to China amid

a trade war between the two nations, with rival suppliers from

South America taking their share.

Pressure from ongoing U.S. corn and soy harvests has also

pressured futures. Warm and dry weather over the U.S. grain belt

helped harvesting over the weekend, and forecasts called for

more of the same this week.

Corn, which has found support from brisk exports and doubts

over U.S. yield potential, was set to be virtually unchanged

over the month and higher for the quarter.