* Corn gains as USDA cuts supply forecast
* Wheat drops on forecasts for big Russian crop
* (Adds European trade, new comment, changes dateline)
By Michael Hogan
HAMBURG, April 12 (Reuters) - Chicago corn rose on Monday, remaining near eight-year highs hit on Friday, supported by strong demand and expectations of lower supplies.
Wheat fell on forecasts of a large crop in the world's biggest exporter Russia.
Chicago Board of Trade most-active corn rose 0.3% to $5.79-1/4 a bushel at 0948 GMT. On Friday, corn hit its highest since June 2013 at $5.95 a bushel.
Wheat fell 1.1% to $6.31-3/4 a bushel, soybeans fell 0.7% to $13.93 a bushel.
U.S. corn supplies will shrink by more than previously forecast due to rising demand from the ethanol, livestock feed and export sectors, the U.S. Department of Agriculture (USDA) said on Friday.
"The global corn market looks set to show a supply deficit of around 19 million tonnes in the current crop year," Commerzbank said in a note.
China's agriculture ministry raised its forecast for 2020/21 corn imports on Friday on strong demand.
"China's official estimates of corn imports were revised up by a whopping 12 million tonnes," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia. "An upward revision is not all that surprising. The scale though was surprising."
Prospects for large South American crops weakened soybeans.
The USDA raised its forecast of Brazil’s 2020/21 soybean harvest to 136.00 million tonnes from 134.00 million tonnes in March, analysts had forecast 132.00-137.00 million tonnes.
For Argentina’s soybean crop, the USDA retained its March forecast of 47.50 million tonnes, at the high end of analyst forecasts of 44.50-47.50 million tonnes.
Wheat fell on “the prospect of another high Russian wheat crop,” said Commerzbank.
Consultancy Sovecon on Friday raised its forecast of Russia's 2021 wheat crop by 1.4 million tonnes to 80.7 million tonnes following favourable weather. Consultancy IKAR on Monday raised its forecast to 81 million tonnes.
European Union wheat exports are set to tail off at the end of this season as Russia continues to ship supplies despite export levies. (Reporting by Michael Hogan, additional reporting by Naveen Thukral, editing by Simon Cameron-Moore)
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