GRAINS-U.S. soybeans continue retreat as skies clear

SYDNEY, Nov 2 - U.S. soybeans and grain futures fell on Monday, dragged down by sharp stock market losses and improving weather in the U.S. Midwest that will help the pace of harvesting corn and soybeans crops.

Corn fell 3.6 percent on Friday and soybeans nearly 1 percent amid forecasts for clear skies across the Midwest this week that would allow the harvestS, the slowest in about 24 years, to pick up pace. FUNDAMENTALS

* Two private crop forecasts this week, from FC Stone and Informa Economics, should give the markets price direction, with some traders leaning toward the two firms raising their corn and soy production estimates from their October outlook.

* The U.S. Department of Agriculture will issue its November crop supply and demand report on Nov. 10.

* For the month of October, corn rose 6 percent and soybeans gained 6 percent. Much of the gains were fueled by the inflow of managed money, a weak dollar and harvest delays.

* Wheat prices rose 8 percent during October as U.S. farmers struggled to seed the winter wheat crop. Delays were particularly bad in states such as Illinois and Indiana where farmers still have to harvest soybeans before they can begin seeding their soft red winter wheat crop.

MARKETS

* The Dow industrials suffered its worst slide since July on Friday on concerns the economic recovery will not be robust enough to sustain the seven-month stock rally, while financials sank on renewed worries about Citigroup's balance sheet. The Dow Jones industrial average slid 249.85 points, or 2.51 percent, to end at 9,712.73.

* The dollar edged higher on Monday against a basket of major currencies, continuing a rally on safe-haven buying fuelled by uncertainty about the strength of the U.S. economy.

* Oil was trading around $76.37 per barrel on Monday continuing to ease after a more than 3 percent plunge on Friday as bearish economic data dented confidence about a recovery in energy demand.

DATA/EVENTS

* German October manufacturing PMI (0853 GMT)

* Euro zone October manufacturing PMI (0858 GMT)

* U.K. October manufacturing PMI (0928 GMT)

* U.S. September construction spending (1500 GMT)

* Institute of Supply Management October U.S. manufacturing index (1500 GMT)

* U.S. September pending home sales (1500 GMT) PRICES AT 2315 GMT Contract Last Change Pct Chg Day Ago MA 30 RSI CBOT Wheat DEC9 489.50 -4.75 -0.96% -1.89% 486.00 39 CBOT Corn DEC9 360.00 -6.00 -1.64% -3.56% 361.68 48 CBOT Soybean NOV9 966.50 -11.50 -1.18% -0.76% 953.74 48 CBOT Rice JAN0 14.67 -0.03 -0.17% +1.94% 13.51 68 Crude DEC9 $76.70 -$0.30 -0.39% -3.59% $73.81 52 Currencies Euro/dlr $1.472 0.000 +0.02% +0.00% 1.479 USD/AUD $0.898 0.001 +0.12% -0.24% 0.902