GRAINS-Wheat falls to two-month low on U.S. rains

SYDNEY, May 27 (Reuters) – U.S. wheat futures fell as much as 1.5 percent on Tuesday to a two-month low, as heavy rains across the southern plains provided much needed moisture to crops that have wilted under dry weather in recent weeks.

FUNDAMENTALS

* Chicago Board Of Trade July wheat fell 1 percent to $6.46-1/4 a bushel, having hit a low of $6.41-1/4 a bushel, the lowest since March 6. Wheat closed down 1 percent on Friday.

* July corn fell 1 percent to $4.73-1/2 a bushel, just above the session low of $4.72 a bushel, the lowest since March 4. Corn gained 0.26 percent in the previous session.

* July soybeans rose 0.28 percent to $15.11-1/4 a bushel, having slid 0.21 percent on Friday.

* Wheat under pressure as Southern Plains receive much needed rain, with the U.S. National Weather Service pegging some parts of the region recording as much as two inches of rain in recent days.

* With prolonged drought, the U.S. Department of Agriculture last week pegged the condition of the winter wheat crop at 29 percent good to excellent, down 1 percentage point from a week earlier.

* The rains will aid newly planted corn. The USDA also said the corn crop was 73 percent planted as of Sunday, just behind the seasonal average of 76 percent.

* China has imported a small amount of corn from Brazil since official approval for the purchases went into effect on March 31, the Asian country’s ambassador said on Monday.

MARKET NEWS

* The euro struggled to gain any momentum early in Asia on Tuesday after drifting off a three-month low against the dollar with public holidays in the United States and Britain all but ensuring an anaemic session overnight.

* Brent crude eased to near $110 a barrel on Monday, down from last week’s two-and-a-half month high, as worries over Ukraine eased slightly following a presidential election.

* The S&P 500 closed at a record high on Friday, buoyed by a rally in housing stocks after better-than-expected home sales and a jump in Hewlett-Packard shares a day after the personal computer maker said it would cut more jobs.

DATA AHEAD (GMT)

0645 France

Consumer confidence

May

0800 Italy

Consumer confidence

May

1230 U.S.

Durable goods orders

April

1300 U.S.

Monthly home price index

March

1300 U.S.

S&P/Case-Shiller home prices

March

1400 U.S.

Consumer confidence

May

1400 U.S.

Richmond Fed composite index

May

1430 U.S.

Dallas Fed manufacturing index

May

Grains prices at 0035 GMT Contract

Last

Change Pct chg Two-day chg MA 30 RSI CBOT wheat

646.25

-6.25 -0.96%

-1.97%

696.63 12 CBOT corn

473.50

-4.50 -0.94%

-0.68%

499.62 28 CBOT soy

1511.25

-4.25 -0.28%

-0.49%

1483.84 59 CBOT rice

$15.21 -$0.04 -0.23%

-0.72%

$15.39 36 WTI crude

$104.32 -$0.03 -0.03%

+0.56%

$101.90 70 Currencies

Euro/dlr

$1.367 $0.002 +0.15%

+0.24% USD/AUD

0.926

0.002 +0.25%

+0.36% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Colin Packham; Editing by Ed Davies)

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