GRAINS-Soybeans rally ahead of tour's final drought-damage tally

* Soybeans lead market higher
* Pro Farmer corn estimate market neutral; bullish soy
* Wheat turns down on rains in US wheat areas
* Soy posts best weekly gain in a month

(Recasts, adds closing prices, adds Pro Farmer crop forecasts,
adds analyst quotes)
By K.T. Arasu and Sam Nelson
CHICAGO, Aug 24 (Reuters) - U.S. soybeans rose 1 percent
o n F riday, and posted the biggest weekly gain in a month, ahead
of final crop estimates from the Pro Farmer tour of the Midwest
this week that were released at the close of Friday's futures
trading.
Following its week-long tour of the U.S. Midwest crop belt,
Pro Farmer pegged 2012 U.S. corn production at 10.478 billion
bushels, below the U.S. Department of Agriculture's (USDA)
current estimate for 10.779 billion bushels and soybean
production at 2.6 billion bushels, below the USDA's outlook for
2.692 billion.
Chris Manns, president of Chicago Traders Group Inc. said
the corn number wasn't surprising but "the soybean number is
low, a bullish soybean number."
USDA will update its production numbers on Sept. 12.
Soybeans were solidly in the driver's seat, edging closer to
the all-time high of $17.77-3/4 set by the spot contract
on July 20 as the worst drought in 56 years devastated the crop,
and export demand is staying strong despite the high prices.
November soybeans were up 16-1/2 cents per bushel at
$17.31-1/2 and rose 5 percent for the week.
Corn futures at the Chicago Board of Trade turned down on
profit-taking and a slide in wheat. Wheat held firm early in the
trading session on dryness in Australia's wheat region and
downgrades to the Russian crop.
However, rainfall in portions of the drought-stricken U.S.
winter wheat region and forecasts for more rain over the weekend
combined to drive wheat futures lower by the close of trade on
Friday.
December corn was down 6-1/4 cents at $8.08-1/2 per
bushel, ending the week nearly flat and September wheat
was down 7 cents at $8.67-1/2 per bushel, ending the week down
nearly 1 percent.

"The Pro Farmer tour numbers have been kicking around and
when you start putting percentages to them (estimates so far)
it's tough to be optimistic," said Tim Emslie, director of
research at Country Hedging.
On Thursday evening, the tour projected corn yield in Iowa
-- the top corn and soybean producing state -- at 137.3 bushels
per acre, down from the USDA's estimate of 141 bushels and well
below the tour's three-year average of 171.7 bushels.

It pegged the state's average soybean pod count at 999.8
pods in a three-foot square, down 20 percent from the tour's
three-year average of 1,255.5 pods.
Traders said soybean prices need to head even higher to
ration demand to ensure U.S. supplies do not run out by the end
of the new-crop marketing year on Aug. 31, 2013 -- when the
stocks-to-use ratio is projected to be the lowest in 48 years.
Traders also were nervous about the approach of Tropical
Storm Isaac to U.S. shores by the weekend. Farmers were hoping
for rainfall from the storm to boost soil moisture depleted by
drought. Yet there was caution that heavy rainfall in the south
and east may harm mature corn and soybeans soon to be harvested.

Prices at 2:20 p.m. CDT (1920 GMT)
LAST NET PCT YTD
CHG CHG CHG
CBOT corn 802.25 -6.50 -0.8% 24.1%
CBOT soy 1737.50 10.25 0.6% 45.0%
CBOT meal 533.40 5.60 1.1% 72.4%
CBOT soyoil 56.24 0.12 0.2% 8.0%
CBOT wheat 867.50 -7.00 -0.8% 32.9%
CBOT rice 1541.00 -1.00 -0.1% 5.5%
EU wheat 260.00 -4.00 -1.5% 28.4%

US crude 95.92 -0.35 -0.4% -2.9%
Dow Jones 13,148 90 0.7% 7.6%
Gold 1669.36 -0.68 0.0% 6.8%
Euro/dollar 1.2514 -0.0048 -0.4% -3.3%
Dollar Index 81.6070 0.2480 0.3% 1.8%
Baltic Freight 717 2 0.3% -58.7%

(Reporting by Naveen Thukral in Singapore, Sybille de La
Hamaide in Paris, KT Arasu and Sam Nelson in Chicago.)