RPT-UPDATE 3-US corn, wheat slip on big supplies, economy woes

* Corn squeezed by feed oversupply, ethanol sector problems

* Wheat remains under pressure from abundant global crop

* Euronext wheat extends drop, awaits Chicago open

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(Recasts with Euronext opening, pvs SINGAPORE)

By Bruce Hextall and Valerie Parent

PARIS/SYDNEY, Nov 21 (Reuters) - U.S corn and wheat futures
eased on Friday, extending losses in the previous U.S. session,
as grains remained under pressure from hefty global supplies and
demand concerns in a deteriorating economy.

"Fundamentally, there's not a lot to support these markets
right now," Brett Cooper, a trader at MF Global Australia
Ltd, said.

Friday's losses added to Thursday's sharp falls, when U.S.
corn and soybean futures fell 4 percent and wheat dropped 3
percent.

U.S. December delivery corn CZ8 fell 3-3/4 cents or 1.03
percent to $3.60 a bushel by 1137 GMT, December wheat WZ8 lost
5 cents or 0.98 percent to $5.06-3/4.

Soybeans for January delivery SF9 inched down 1-3/4 cents
or 0.20 percent to $8.54-1/4 per bushel.

Soybeans had been slightly firmer earlier as they found
support in steady crude oil CLc1, which regained the $50
threshold surrendered in Thursday's slide, and in dry weather in
Argentina, the world's third-largest soybean exporter.

Corn was feeling the squeeze in particular as traders took
the view that the world was well supplied with feed grains and
demand for ethanol production would be cut back.

"When you look at the feed grain complex in general it is
under a fair bit of pressure, and with ethanol you are seeing the
problems some of these companies in the U.S. are having like
VeraSun," Cooper said.

One of the largest U.S. ethanol makers, VeraSun VSUNQ.OB
recently filed for bankruptcy protection, leading to concerns
about the health of the U.S. ethanol industry and its demand for
corn.

"Ethanol demand is questionable and with crude coming off,
ethanol prices have been coming off accordingly," said Tim Glass,
head of global commodities at National Australia Bank Ltd.

Front-month corn has retreated from a record high in June of
$7.65 and is now back at the level it was trading at the start of
last year.

Wheat has tumbled more than 60 percent from an all-time peak
in February of $13.34-1/2 a bushel.

Cooper said Black Sea wheat was being offered "at aggressive
prices" as suppliers sought to reduce the cost of holding
inventories.

Egypt purchased 30,000 tonnes of Russian wheat on Thursday,
illustrating the price competitiveness of Black Sea grain.
[ID:nLK736021]

In morning Euronext trade, European milling wheat futures
eased in line with U.S. grains.

"The market is holding up at around 135 euros as we wait to
see what Chicago will do later," one trader said.

The market will be watching in particular to see if Chicago
wheat falls through the $5 a bushel, other traders said.

January wheat BL2F9 was down 1.25 euros or 0.92 percent at
134.50 euros a tonne, after breaking through the key 138 support
floor in a sharp fall on Thursday.

Grains prices as of 1137 GMT
Product Last Change Pct Move End 2007 Ytd Pct

move
CBOT corn 360.00 -3.75 -1.03 455.50 -20.97
CBOT soy 854.25 -1.75 -0.20 1199.00 -28.75
CBOT wheat 506.75 -5.00 -0.98 885.00 -42.74
CBOT rice 13.21 -0.21 -1.53 13.55 -2.51
US crude 49.80
Euro/dollar 1.2605
(Corn, soybean, wheat U.S. cents per bushel)
(Rice U.S. cents per hundredweight)
(Crude $ per barrel)

(Writing by Gus Trompiz; editing by Sue Thomas)