UPDATE 3-US soybeans dive on weather, Argentina; corn soars

(New throughout; updates with U.S. prices, changes dateline from previous LONDON, changes byline)

By Julie Ingwersen

CHICAGO, April 28 (Reuters) - U.S. soybean futures fell 2 to 3 percent on Monday on ideas that cool, wet conditions in the U.S. Midwest could limit plantings of corn and favor soybeans instead, traders said.

Also bearish for soybeans were signals that Argentine farm leaders might extend a deadline set for talks with the government to avert the resumption of a strike that shut down grain exports last month. Such an extension could limit export demand for U.S. soybeans and soy products.[ID:nN28370904]

On the Chicago Board of Trade, soybeans for May delivery SK8 were down 40 cents, or 3 percent, at $12.85-3/4 per bushel as of 12:45 p.m. CDT (1745 GMT). New-crop November soybeans SX8 were down 26 cents, 2 percent, at $11.96.

CBOT May corn CK8 was up 15 cents at $5.92-1/4 per bushel.

Argentine farmers have threatened to resume their strike on May 2. Both sides have been negotiating for weeks without an agreement.

The suggestion of an extension, made by a key Argentine farm leader, came four days after the resignation of Economy Minister Martin Lousteau, blamed by many farmers for implementing a new sliding-scale tax scheme on grains exports that hiked the levy on soy products.

Lousteau's decision to step down Thursday was welcomed by farm leaders who said they hoped talks could move forward.