* U.S. soybeans production pegged lower than USDA - Pro Farmer
* Soybeans and corn output seen at lowest levels since 2003
By Colin Packham
SYDNEY, Aug 27 (Reuters) - U.S. new-crop soybeans hit a contract high on Monday, extending gains from the previous session, after farm newsletter Pro Farmer estimated drought-stricken U.S. soybean production would be worse than forecasts by the U.S. Department of Agriculture.
Chicago Board Of Trade November soybeans hit a record of $17.60-1/2 a bushel, before slipping back slightly. New-crop soybeans firmed 0.96 percent in the previous session.
The previous record of $17.44-3/4 was set on August 23.
"The crop tour was concluded last week, and the results were disappointing for both corn and soybeans, and that is supporting the grains market today," Ker Chung Yang, commodities analyst at Phillip Futures in Singapore, said.
December corn rose 1.11 percent to $8.17-1/2 a bushel recouping all of the losses from the previous session when the grain fell 0.77 percent.
New-crop wheat tracked corn, climbing 1.04 percent to $8.97-3/4 a bushel, having closed down 0.7 percent on Friday.
CORN AND SOYBEANS HARVESTS AT LOWEST LEVELS SINCE 2003
The jump in corn and further gains in soybeans came after Pro Farmer released its corn and soybean production forecasts at the end of trading on Friday, predicting grain and oilseed production will fall to its lowest since 2003.
The U.S. soybeans harvest was forecast at lower levels than that estimated by the USDA following the worst drought to hit the U.S. Midwest in 56 years.
Pro Farmer pegged soybean production at 2.60 billion bushels on a yield of 34.8 bushels per acre. Earlier this month, USDA estimated the soybean harvest at 2.692 billion bushels and yield at 36.1 bushels per acre.
U.S. corn production was forecast at 10.478 billion bushels, based on a yield of 120.25 bushels per acre. That compares with the USDA's latest forecast of a 10.779 billion bushel crop on a yield of 123.4 bushels per acre.
Pro Farmer released its estimate following its annual crop tour, which surveyed more than 2,200 corn and soybean fields in Midwest states that accounted for 73 percent of U.S. corn production in 2011 and 66 percent of soybean production.
In Iowa, the top producer of both corn and soybeans, Pro Farmer pegged corn yields at 139 per bushels per acre as the corn went through its yield-determining phase of growth in scorching temperatures and parched soils.
Soybean yields in Iowa were forecast at 41 bushels per acre. Pro Farmer said the state's soybeans were the "least bad" of the western Corn Belt.
Pro Farmer pegged corn yield in Illinois, the second biggest production state, at 139 bushels per acre and soybean yield at 36 bushels per acre.
Grains prices at 0120 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 897.75 9.25 +1.04% +0.34% 908.13 48
CBOT corn 817.50 9.00 +1.11% +0.34% 802.23 52
CBOT soy 1759.75 28.25 +1.63% +2.61% 1638.16 68
CBOT rice $15.89 $0.20 +1.24% +3.02% $15.60 53
WTI crude $97.45 $1.30 +1.35% +1.23% $92.36 71
Currencies
Euro/dlr $1.250 -$0.001 -0.06% -0.06%
USD/AUD 1.038 -0.004 -0.39% -0.23%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Reporting by Colin Packham; Editing by Ed Davies)
Source: http://in.reuters.com/article/2012/08/27/markets-grains-idINL3E8JR01620120827
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