Rewrites paragraph 1; updates prices, adds quotes, dschanges byline, changes dateline from previous PARIS/BEIJING

By Julie Ingwersen

CHICAGO, June 11 (Reuters) - Benchmark Chicago corn futures fell to contract lows on Thursday after a monthly U.S. government crop report underscored ample domestic and global grain supplies while weather forecasts were generally favorable in the Midwest, bolstering production prospects, analysts said.

Soybean and wheat futures followed the weaker trend, although the U.S. Department of Agriculture in a monthly supply/demand report cut its estimate of U.S. 2026 wheat production more than most analysts expected.

As of 12:53 p.m. CDT (1753 GMT), Chicago Board of Trade July corn CN26 was down 7-1/4 cents at $4.11-3/4 per bushel after hitting a life-of-contract low at $4.10-1/2. CBOT July soybeans SN26 were down 11-1/2 cents at $11.11-1/2 a bushel after dipping to $11.08-1/4, the contract's lowest level since February 4.

Corn and soy futures sagged as storms continued to cross the Midwest crop belt, bringing localized wind and hail damage as well as broadly beneficial rains.

"For now, Midwest weather is generally considered favorable for June crop development," StoneX chief commodities economist Arlan Suderman wrote in a client note.

The USDA's monthly report offered few major surprises but the government raised its forecast of global corn inventories at the end of the 2026/27 marketing year to 281.22 million metric tons from 277.54 million in May and above a range of trade expectations .

The USDA also raised its estimates of 2025/26 corn production in Argentina and Brazil .

CBOT wheat futures declined but found underlying support after the USDA lowered its forecast of U.S. 2026 wheat production for the 2026/27 marketing year to 1.543 billion bushels from 1.561 billion in May and below an average of analyst estimates.

Production of hard red winter wheat, the largest variety grown in the U.S., was projected to fall to 497 million bushels, the lowest since 1957, following a drought in the Plains.

CBOT July soft red wheat WN26 futures were down 1 cent at $5.86-1/2 a bushel while K.C. July hard red wheat futures KWN26 were up 2-1/2 cents at $6.33 a bushel.

A retreat in crude oil CLc1 prices added to bearish sentiment in commodities. Oil prices fell sharply after U.S. President Donald Trump said he cancelled plans to strike Iran on Thursday.