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GRAINS-Soybeans fall 1 percent, hit three-day low

SYDNEY, May 18 (Reuters) - U.S. soybeans fell more than 1 percent on Thursday as a drop in the Brazilian real stoked expectations that South American farmers would increase sales.

FUNDAMENTALS

* The most active soybean futures on the Chicago Board Of Trade fell 1.1 percent to $9.64-3/4 a bushel by 0040 GMT, near the session low of $9.63-3/4 a bushel - the lowest since May 15. Soybeans were little changed on Wednesday.

* The most active corn fell 0.7 percent to $3.68-3/4 a bushel, having gained 1 percent in the previous session.

* The most active wheat fell 0.3 percent to $4.25-3/4 a bushel, having closed up 0.6 percent on Wednesday.

* Soybeans pressured by a weaker Brazilian real, which may encourage farmers to sell their ample supplies.

* Egypt's main state wheat buyer purchased two cargoes of U.S. hard red winter wheat in an international tender along with cargoes from Romania, Ukraine and Russia. Egypt's General Authority for Supply Commodities said it bought a total of 295,000 tonnes of wheat.

* Soybeans supported by persistent Chinese demand and as U.S. farmers slow sales.

MARKET NEWS

* The dollar fell by nearly 2 percent against the yen to its lowest level since April and hit a six-month low against the Swiss franc on Wednesday as talk that U.S. President Donald Trump could face the threat of impeachment boosted safe-haven assets.

* Oil prices settled at a two-week high on Wednesday after U.S crude inventories declined for the sixth straight week, a positive sign for markets ahead of next week's OPEC meeting, where major oil producers are expected to extend supply cuts.

* The S&P 500 and the Dow notched their biggest one-day fall since Sept. 9 as investor hopes for tax cuts and other pro-business policies faded after reports that U.S. President Donald Trump tried to interfere with a federal investigation set off alarm bells on Wall Street.

DATA AHEAD (GMT)

0130 China House prices Apr 0830 Britain Retail sales Apr 1230 U.S. Weekly jobless claims 1230 U.S. Philly Fed business index May 1400 U.S. Leading index Apr

Grains prices at 0040 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 425.75 -1.25 -0.29% +0.35% 435.73 49 CBOT corn 368.75 -2.75 -0.74% +0.27% 369.70 57 CBOT soy 964.75 -11.00 -1.13% -1.18% 963.97 52 CBOT rice 10.91 $0.00 +0.00% +2.68% $10.18 82 WTI crude 48.99 -$0.08 -0.16% +0.68% $49.53 59

Currencies

Euro/dlr $1.116 $0.000 +0.02% +0.70% USD/AUD 0.7425 -0.001 -0.08% -0.01%

Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential

(Reporting by Colin Packham; Editing by Richard Pullin)