* Corn hit fresh 14-month low after USDA report * Soy falls after rising on f'cast of tight stocks * U.S. sees surge in corn stocks, fewer soybeans * European milling wheat edge higher in thin volume By Colin Packham and Svetlana Kovalyova SYDNEY/MILAN, May 11 (Reuters) - Chicago corn hit a fresh 14-month low on Friday, after the United States predicted stocks would climb this autumn to their highest in seven years, while soybeans fell as investors booked profits after the previous session's gains. "In Chicago funds are continuing to sell corn. They're now playing the selling card on cereals as a whole," a European futures trader said. "Overall sentiment is bearish on the market with good harvest prospects. But yield forecasts are high so we are going to have to monitor the weather going forward. In addition we've got the macro-economic mood weighing," the trader said. Markets have been alarmed that anti-austerity votes in Greece and France could drag the euro zone down after cheap central bank loans and plans for bigger bailout funds had appeared to help the bloc avoid the worst. Chicago Board Of Trade July corn futures slipped 0.81 percent to $5.82-3/4 a bushel by 1104 GMT, the lowest level since March 17, 2011. July soybeans fell 1.1 percent to $14.39-1/4 a bushel, after climbing 1.7 percent in the previous session as the U.S. Department of Agriculture estimated record-large exports next season, shrinking the U.S. stocks to lowest in four years. "There is the macro-economic sentiment and falling prices of crude oil and vegetable oils," the trader said. U.S. July wheat fell 0.5 percent to $5.98-1/4 a bushel. In Europe, Euronext benchmark new crop November wheat rose 0.75 euros or 0.38 percent to 196.25 euros a tonne in thin volumes. The USDA's first estimates for this year's harvest and next year's demand showed domestic corn stocks will surge from a near record low this year to a seven-year high by September 2013, aided by expected record yields as farmers sprinted to plant an early crop. "The report was very bearish for corn. Analysts saw it as neutral for wheat but I viewed it as more bullish," the trader said, referring to the USDA's forecasts for lower U.S. and world wheat stocks next season. A record-large autumn 14.79-billion-bushel harvest in the United States, boosted by an unexpectedly high 166-bushel-per-acre yield, will send stocks to 1.881 billion bushels by the end of next season, USDA said in its monthly report. For this year, the USDA surprised the market by raising its corn ending stocks estimate to 851 million bushels, still the tightest in 16 years but well above trade expectations for a drop to 749 million. * Prices as of 1059 GMT Product Last Change Pct Move End 2011 Ytd Pct Paris wheat 196.50 1.00 +0.51 195.25 0.64 London wheat 148.05 -0.45 -0.30 153.65 -3.64 Paris maize 211.00 -0.25 -0.12 197.25 6.97 Paris rape 475.50 -4.50 -0.94 421.50 12.81 CBOT corn 623.50 -2.00 -0.32 654.75 -4.77 CBOT soybeans 1432.00 -20.25 -1.39 1207.75 18.57 Crude oil 95.93 -1.15 -1.18 98.83 -2.93 Euro/dlr 1.29 0.00 -0.02 1.30 -0.17 * All grain and oilseed prices for second position. Paris futures prices in Euros per tonne, London wheat in pounds per tonne and CBOT in cents per bushel.

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