Wheat extends losses on high plantings forecast

SYDNEY/PARIS, July 1 (Reuters) :  US grain futures extended losses on Tuesday, with corn hitting a near six-month low, after the US Department of Agriculture surpassed market expectations with projections for ample supplies.

Chicago Board of Trade front-month corn futures fell 0.29 per cent to $4.22-3/4 a bushel, after hitting $420, the lowest since January 10.

September corn futures, the most actively traded contract, fell 0.42 per cent to $4.17 a bushel, hitting a fresh contract low.

"The USDA report from last night continues to weigh," said Paul Deane, senior agricultural economist, ANZ Bank. "There will be funds trying to close positions and limit losses."

The US Department of Agriculture said US corn stocks as of June 1 were 3.85 billion bushels, up 39 per cent from a year ago, and above the trade guess of 3.72 billion.

Corn planting was seen at 91.6 million acres, implying a crop of almost 13.9 billion bushels, just below the record, using a projected yield of 165.3 bushels per acre.

Adding to pressure, analysts said, was confirmation that recent wet weather across the key growing conditions aided crops.

US corn crop improved and soybean ratings held steady at their highest in 20 years due to warm temperatures and rain in key production areas of the Midwest, the US government said on Monday.