GRAINS-U.S. soy falls for 2nd day, corn eases on improved weather

SINGAPORE, July 30 (Reuters) – Chicago soybeans fell for a second session on Wednesday, while corn lost more ground on forecasts of improved weather in the U.S. grain belt.

Wheat edged higher after sliding 2.7 percent in the previous session on higher-than-expected supplies from the Black Sea region which are offering stiff competition to U.S. exporters.

FUNDAMENTALS

* Corn and soybean futures have come under renewed pressure as forecasts for rain in the U.S. Midwest next week alleviated concerns that dry conditions could reduce harvest prospects for both crops.

* Storms on Sunday and Monday should bring 0.5 inch (1.3 cm) of rain to northwestern areas of the U.S. Corn Belt, including Minnesota and Iowa. Showers should expand into the rest of the Midwest later in the week.

* Wheat dropped on Tuesday, weighed down by big production forecasts in Ukraine and Australia. Supplies were moving from troubled countries in the Black Sea region with no problem, adding further pressure to prices.

* Ukrainian consultancy UkrAgroConsult on Tuesday raised its forecast for Ukraine’s 2014 grain harvest by around 4 percent to 57.4 million tonnes, mainly due to higher grain yields.

* Australia’s largest grain producing state Western Australia is likely to beat official forecasts for wheat output in the 2014/15 season by about 1 million tonnes, or 12 percent, wheat exporter CBH Group said on Tuesday.

MARKET NEWS

* The U.S. dollar hovered at a six-month peak against a basket of major currencies early on Wednesday, having pushed higher as investors continued to give the euro a wide berth.

* U.S. crude oil futures regained some of the previous day’s losses to trade above $101 early on Wednesday, after industry data showed U.S. petroleum stockpiles fell much more sharply than expected.

DATA/EVENTS (GMT) 
0645 France Consumer confidence July 
0900 Euro zone Business climate July 
1200 Germany Consumer inflation July 
1215 U.S. ADP national employment July 
1230 U.S. GDP Advance Q2 
1800 Federal Reserve releases statement after 2-day meeting
    
    
  Grains prices at  0101 GMT
  Contract        Last    Change  Pct chg  MA 30   RSI 
  CBOT wheat     521.00     1.00  +0.19%    557.26   37
  CBOT corn      370.75    -0.25  -0.07%    405.54   25
  CBOT soy      1091.75    -3.25  -0.30%   1138.66   44
  CBOT rice      $13.11   -$0.03  -0.19%    $13.39   38
  WTI crude     $101.02    $0.05  +0.05%   $103.68   33
  Currencies                                                
  Euro/dlr       $1.341  -$0.002  -0.13%    
  USD/AUD         0.938   -0.001  -0.11%    
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
                                                                                     
    

 (Reporting by Naveen Thukral; Editing by Richard Pullin)

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