UPDATE 2-U.S. growing record soybean crop, No 2 corn - USDA

* Largest US soybean crop, No. 2 corn crop in 2009

* "Sharply lower summer price prospects" for corn

* Corn-to-ethanol down 100 million bushels for 2008/09

* Lower corn, soybean, wheat prices in 2009/10 (Updates with market reaction and other details)

By Charles Abbott

WASHINGTON, July 10 (Reuters) - U.S. farmers will harvest their largest soybean crop and the second-largest corn crop ever, averting a potential supply squeeze while also leading to softer prices for the commodities, the government said on Friday.

The U.S. Agriculture Department said corn farmers face "sharply lower summer price prospects." Good weather and boosted plantings bode for a bumper crop.

Crop prices will return to "more normal" levels after last summer's problems in the world's top corn and soy producer helped drive prices to record highs, said Gerald Bange, chairman of the USDA's World Agriculture Outlook Board.

"The crop conditions are really not bad in most of the places where we're looking," Bange said on USDA's radio service.