* Corn soybean futures suffer deep losses after recent rallies
* Lower than expected decline in inventories weighs on prices (Recasts, adds quote in paragraphs 5-6, details on Argentine taxes)
By Naveen Thukral
SINGAPORE, Feb 11 (Reuters) - Chicago corn futures fell 1.4% on Thursday, dropping to their lowest level in more than two weeks, as a smaller-than-expected decline in stocks weighed on the market for a second session.
Soybeans fell, while wheat slid for a second straight session.
The most-active corn contract on the Chicago Board Of Trade fell 1.4% to $5.27 a bushel by 0321 GMT, after hitting its lowest level since Jan. 26 at $5.25 a bushel earlier in the session.
Soybeans slipped 0.8% to $13.42-3/4 a bushel, after finishing down 3.4% in the previous session and wheat lost 0.4% at $6.33 a bushel, after ending 2.2% lower on Wednesday.
There are no signs that China's importers are going to add to their corn import binge, said Tobin Gorey, director of agricultural strategy at the Commonwealth bank of Australia.
"In that context the market, with many heavily long, gave up on further gains for now. And likely it takes further falls to clear all the loose longs out of the market."
Chinese feed makers have stepped up corn imports in recent months amid a domestic decline in supplies.
However, the U.S. Department of Agriculture (USDA) only minimally trimmed its U.S. end-of-season stocks outlook and raised its export forecast by less than many traders had anticipated.
The agency projected U.S. corn ending stocks for the 2020/21 marketing year at 1.502 billion bushels and soybean ending stocks at 120 million bushels, both down from January. Analysts polled by Reuters had expected corn ending stocks of 1.392 billion and soy ending stocks of 123 million.
The USDA announced that unknown buyers cancelled an export deal for 132,000 tonnes of U.S. corn.
The advancing soy harvest in South America added pressure, with traders saying U.S. exporters will finally have some competition as crops from Brazil and Argentina hit the market.
Argentina's government has decided not to go ahead with proposals to hike taxes on farm exports or limit how much grain can be shipped abroad to curb rising food prices after warnings from farmers that they would protest the measures.
Farm office FranceAgriMer on Wednesday increased its forecast of French soft wheat exports outside the European Union this season on brisk overseas demand but kept its stocks estimate stable.
Commodity funds were net sellers of CBOT corn, soybean, wheat, soymeal and soyoil futures contracts on Wednesday, traders said.
(Reporting by Naveen Thukral; Editing by Amy Caren Daniel)
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