* Markets extend gains after USDA report Tuesday
* U.S. soy stocks enter "danger zone" -Rabobank
* Traders eye South America crop weather
CHICAGO, Nov 11 (Reuters) - U.S. soybean futures on
Wednesday hit new four-year highs for the third consecutive day,
while corn futures topped a one-year high on strong export
demand and tighter supply estimates.
The markets extended a rally triggered when the U.S.
Department of Agriculture on Tuesday issued a monthly crop
report that said corn and soybean stockpiles this marketing year
will fall to their smallest in seven years.
"The most interest is on domestic ending stocks which
dropped to minimal levels, especially on soybeans," said Karl
Setzer, commodity risk analyst for AgriVisor.
Chicago Board of Trade most-active soybeans were up
3-1/4 cents at $11.49-1/4 a bushel at 10:50 a.m. CST (1650 GMT).
The contract earlier hit $11.62-1/4 a bushel, the highest since
New contract highs were made in all soybean futures
contracts through November 2021 overnight.
CBOT wheat fell 7-3/4 cents to $6.00-3/4 a bushel.
Corn slipped 4-3/4 cents to $4.18-1/4 a bushel, after
earlier reaching $4.28, its highest price since July 2019.
New contract highs were reached overnight in December,
March and May corn futures contracts.
The USDA on Tuesday forecast 2020/21 U.S. corn season ending
stocks at 1.702 billion bushels, against analyst forecasts of
2.033 billion. The agency estimated U.S. soybean
ending stocks at 190 million bushels, against analyst forecasts
of 235 million.
The USDA report "finally bought U.S. stocks, particularly
for soy, into the danger zone," Rabobank said in a report.
South American weather needs to be favorable for crops in
the coming months to generate large enough harvests to limit
mounting pressure on U.S. stocks, Rabobank said.
"When it comes to South America, all interest is on the dry
conditions in Southern Brazil and Argentina," Setzer said.
"There is little doubt this will reduce the output from that
region even if rains do develop."
(Reporting by Tom Polansek in Chicago. Additioanl reporting by
Michael Hogan in Hamburg and Colin Packham in Sydney, editing by
Mark Potter and Chris Reese)