GRAINS-Soybean futures fall on harvest pressure

* Dry weather forecasts weighs on soybean futures

* Corn, wheat prices also weak due to firm dollar

* Rice soars on supply worries (Updates with CBOT trading, new byline, changes dateline, previous SINGAPORE)

CHICAGO, Oct 28 - U.S. soybean futures fell at the Chicago Board of Trade on Wednesday on expectations for dry weather that should provide farmers with a window to make significant harvest progress.

"I think that they are the crop that farmers are trying to harvest first the minute they get any chance to do so," said Anne Frick, oilseeds analyst with Prudential Bache Commodities. "I sense that the sell-off we are seeing is probably largely related to harvest movement."

Storms expected on Thursday and Friday in the U.S. Midwest should stall the harvest of soybeans and corn but significantly drier weather was predicted for next week, according to forecaster Mike Palmerino of DTN Meteorlogix.

At 11:31 a.m. CDT (1631 GMT), CBOT November soybean futures were down 8-1/2 cents at $9.65 a bushel.

Wheat and corn futures also dropped, their fourth consecutive day of losses on pressure from outside markets.

The December corn contract was 3 cents lower at $3.67-3/4 a bushel and soft red winter wheat for December delivery was down 5-3/4 cents at $4.97-1/2 a bushel.

"The dollar is not much higher but it is not any lower," said Vic Lespinasse of GrainAnalyst.com. "Crude (oil) is down sharply. That is probably encouraging a little selling."

Rice futures bucked the downward trend, rising 2.9 percent amid worries about smaller Asian supplies after India's crop suffered losses from severe weather.

CBOT November rice was up 39-1/2 cents at $13.90 a hundredweight.

"(It is) speculative buying off of conversations and issues about supply problems," said Neauman Coleman, analyst and rice broker in Brinkley, Arkansas.

Soybeans fell to their lowest level since Oct. 9 and corn prices were at their lowest level since Oct. 12.

The December wheat contract had traded higher earlier in the session, bouncing from a two-week low as traders covered short positions.

"The early start higher today points to a little bit of consolidation," said Luke Mathews, commodity strategist at Commonwealth Bank of Australia.

Wheat has lost more than 8 percent since Thursday as the dollar strengthened and investors realized the rally last week to a four-month top was overdone. The downturn came despite delays in the seeding of the winter wheat crop and expectations that many U.S. farmers may abandon their planting plans for soft red winter wheat.

"The market may be slightly concerned about the slow pace of final U.S. wheat plantings, but the fact remains there is plenty of wheat around," Commonwealth Bank of Australia said in a research note.

"Prices rose very sharply during the first half of October mostly on the back of outside markets, therefore prices are susceptible to falling just as quickly if the bullish outside momentum falters."

The dollar held gains against a basket of currencies on Wednesday while the yen rose as concerns about global economic growth rekindled safe-haven demand for both currencies.

A stronger dollar makes U.S. commodities less competitive in the international market. Prices at 11:32 a.m. CDT (1632 GMT)

Pct 2008 YTD

Last Change Chg Close Pct Chg --------------------------------------------------------------- CBOT corn Cc1> 3.6700 -0.0375 -1.0 4.07 -9.8 CBOT soy Sc1> 9.6450 -0.0900 -0.9 9.7225 -0.8 CBOT meal SMc1> 288.90 1.30 0.5 300.5 -3.9 CBOT soyoil BOc1> 0.3693 -0.0055 -1.5 0.3329 10.9 CBOT wheat Wc1> 4.9775 -0.0550 -1.1 6.1075 -18.5 CBOT rice RRc1> 13.9000 0.3950 2.9 15.34 -9.4 EU wheat BL2c1> 127.50 -0.25 -0.2 137 -6.9 US crude CLc1> 77.63 -1.92 -2.4 44.60 74.1 Dow Jones .DJI> 9835 -47 -0.5 8776 12.1 Gold XAU=> 1028.20 -10.60 -1.0 878.20 17.1 Euro/dollar EUR=> 1.4734 -0.0075 -0.5 1.3978 5.4 Dollar Index .DXY> 76.4100 0.2750 0.4 81.1510 -5.8 Baltic Freight .BADI> 2986 -27 -0.9 774 286 ---------------------------------------------------------- *In U.S. dollars, front-month contracts, except EU wheat, which is in euros, CBOT wheat, corn and soybeans per bushel, rice per hundredweight, soymeal per ton and soyoil per lb. (Additional reporting by Christine Stebbins in Chicago and Naveen Thukral in Singapore)