GRAINS-Chicago grains and soybeans dip on year-end positioning, tariff worries

Updates with US trading

By Renee Hickman

CHICAGO, Feb 26 (Reuters) - Chicago corn, soy and wheat eased on Wednesday as traders took profits and monitored the possible impacts of U.S. tariffs on imports from Mexico and Canada, set to take effect on March 4 after a 30-day delay.

The most active soybean contract Sv1 on the Chicago Board of Trade was down 6-1/4 cents at $10.42-1/2 a bushel by 11:18 a.m. CST (1718 GMT).

CBOT most active corn Cv1 was down 1/2 cent to $4.93-3/4 a bushel, and most active wheat fell 4-1/2 cents to $5.83-1/4 per bushel.

Month-end positioning drove all three commodities downward, said Karl Setzer, a partner at Consus Ag consulting, with Friday being the first notice day for deliveries against CBOT March futures contracts.

Soybeans in particular are feeling pressure from the South American harvest, which is widely forecast to reach a record volume, he said.

Attention is also turning to the U.S. Department of Agriculture's annual Outlook Forum on Thursday, where early projections for corn and soybean planting will be given. Analysts expect a shift in acreage from soybeans towards corn.

Signs that U.S. farmers will expand corn planting drove selling this week by commodity funds that have a large net long position, analysts said, and wheat also fell despite bitter cold temperatures in the U.S. Plains last week, with crops protected by snow cover.

"It looks like the wheat made it through with very little damage," said Setzer.

Warming temperatures in the same region this week are expected to further benefit the crop, he said.

Meanwhile, market players are dealing with uncertainty over proposed U.S. tariffs, which President Donald Trump has said are on track to be levied on imports from Mexico and Canada. Traders fear possible reprisals against U.S. agricultural exports.