* Reduced USDA forecasts of U.S. harvest, stocks in focus
* Argentina drought, China demand add to corn supply concerns
* Soybeans hit new 6-1/2 year high, wheat at fresh 6-year top
By Gus Trompiz and Naveen Thukral PARIS/SINGAPORE, Jan 13 (Reuters) - Chicago corn jumped again on Wednesday to reach a 7-1/2-year high as reduced U.S. supply projections, which had pushed prices up by their daily limit a day before, continued to unsettle the market.
Soybeans also extended gains, setting a new 6-1/2 year peak, after the U.S. Department of Agriculture's (USDA) widely followed crop estimates confirmed tightening U.S. supplies of the oilseed.
Wheat notched up a new six-year high, supported by uncertainty over Russian export policy.
The most-active corn contract on the Chicago Board of Trade (CBOT) was up 3.5% at $5.35-1/2 a bushel as of 1154 GMT, after climbing to its highest since mid-2013 at $5.39.
On Tuesday, the corn contact closed up at the daily 25-cent limit. Corn trading limits will increase to 40 cents on Wednesday, CBOT operator CME Group said.
The USDA revised downwards its estimate of 2020/21 U.S. corn production to below average trade expectations, while also projecting lower-than-expected U.S. corn stocks at the end of the season.
It also reduced its outlook for the corn harvest in Argentina, which is facing drought, and further raised its forecast for Chinese corn imports.
The USDA also lowered estimated U.S. soybean production and ending stocks, along with U.S. and world wheat inventories.
"The USDA's seemingly unending cuts to U.S. G&O (grain and oilseed) supplies continued this month, and with soybean and corn stores particularly bare, it seems only a matter of time before cuts shift to demand," Rabobank said in a note.
The market remained focused on weather prospects in South America, with rainfall forecasts in Argentina closely monitored. Argentina's government said on Tuesday it had lifted a 30,000-tonne-per-day limit recently placed on corn exports.
CBOT soybeans were up 0.3% at $14.222-1/2 a bushel, while wheat was up 1.0% at $6.71-3/4 a bushel.
Russia is to discuss this week possible changes to a planned wheat export tax amid reports it could raise the levy.
Prices at 1154 GMT Last Change Pct Move End 2020 Ytd Pct Move CBOT wheat 671.75 6.75 1.02 640.50 4.88 CBOT corn 535.50 18.25 3.53 484.00 10.64 CBOT soy 1422.50 4.25 0.30 1311.00 8.50 Paris wheat Mar 228.50 4.00 1.78 213.25 7.15 Paris maize Mar 212.75 4.25 2.04 198.50 7.18 Paris rape Feb 442.75 1.25 0.28 418.25 5.86 WTI crude oil 53.33 0.12 0.23 48.52 9.91 Euro/dlr 1.22 0.00 -0.32 1.2100 0.56 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne (Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Subhranshu Sahu and Pravin Char)
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Chicago corn hits highest since 2013 after USDA cuts supply outlook - Successful Farming
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