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GRAINS-U.S. corn, soy futures rise on crop concerns; wheat sags from one-month peak

(Updates with closing prices, new analyst quote)

CHICAGO, Aug 24 (Reuters) - U.S. corn and soybean futures rose on Monday on expectations that a government report will show crop ratings deteriorated in the past week, underpinning recent forecasts that pegged the harvest below the U.S. Agriculture Department’s latest outlook.

A spate of dryness across the U.S. Midwest, combined with a severe wind storm that damaged crops across key parts of Iowa, have reduced crop potential following near-perfect conditions through July.

“Rains are due this upcoming weekend, but that should be too late for ear fill on the corn, and most agronomists are saying that damage has been done to beans, so rains in a week will just stabilize the crop,” Charlie Sernatinger, global head of grain futures at ED&F Man Capital, said in a note.

Wheat futures dropped, retreating from a one-month peak hit during the overnight trading session, on profit-taking after a seven-session streak of higher closes and bearish harvest outlooks.

“I think it is back to reality on the wheat,” said Don Roose of U.S. Commodities in West Des Moines, Iowa. “The Russian wheat yields are bigger The Canadian crop looks large and Australia is getting some rain. The fundamentals finally caught up with the market.”

Chicago Board of Trade December corn futures settled up 4-1/2 cents at $3.45 a bushel. CBOT November soybeans gained 1 cent to $9.05-3/4 a bushel.

Advisory service Pro Farmer on Friday projected U.S. corn and soybean harvests will be below the U.S. government’s forecasts, with a corn crop of 14.820 billion bushels and a soybean crop of 4.362 billion bushels.

The USDA will release its weekly crop progress and condition report on Monday at 3 p.m. CDT (2000 GMT).

CBOT December wheat futures ended down 7-1/4 cents at $5.27-3/4 a bushel. (Aditional reporting by Naveen Thukral in Singapore and Sybille de La Hamaide in Paris; Editing by Dan Grebler and Andrea Ricci)