GRAINS-Soybeans at seven-week low as speculators unwind bullish bets

CANBERRA, Dec 15 (Reuters) - Chicago soybean futures dropped to a seven-week low on Monday as speculative investors unwound large long positions, pressured by weak U.S. export demand and plentiful global supplies.

Wheat and corn futures dropped as traders assessed plentiful supply.

FUNDAMENTALS

• The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.1% at $10.75-1/2 a bushel, as of 0144 GMT, with CBOT wheat slipping 0.2% to $5.28-1/4 a bushel and corn down 0.1% at $4.40-1/2 a bushel.

• Soybeans have fallen 8% from a 17-month high of $11.69-1/2 reached in November when the market hoped a trade truce between Beijing and Washington would see China quickly buy large quantities of U.S. beans.

• The U.S. Department of Agriculture (USDA) on Friday confirmed more sales of U.S. soy to China and Chinese stockpiler Sinograin is making room for U.S. beans to arrive, but purchases remain well below the 12 million tons U.S. officials said China would buy by year-end.

• U.S. exports this marketing year are well below last year's pace, and traders expect sales to slow further in the coming weeks as top producer Brazil starts harvesting what is expected to be a record-sized crop.

• Funds built a massive net long position in CBOT soybean futures by mid-November, data from the U.S. Commodity Futures Trading Commission showed, making the market vulnerable to episodes of long liquidation. Funds were significant net sellers of soybeans and corn on Friday, traders said.

• Meanwhile, Argentina's government formalised a cut to export taxes on Friday on grains and by-products by publishing the measure in the official gazette.

• Argentina is currently harvesting a record-large wheat crop and is loading a first bulk shipment bound for China, opening a new trade route between the two countries, according to Chinese shipper COFCO International.

MARKETS NEWS

• Asian stocks tumbled as investors reined in risk-taking at the start of a week sprinkled with central bank decisions and data releases. MKTS/GLOB