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GRAINS-Soybeans edge up, but set to finish week down 2 percent

SYDNEY, May 19 (Reuters) - U.S. soybeans edged higher on Friday after sinking to a one month low in the previous session, but the oilseed was still poised to finish the week down nearly 2 percent as a weaker Brazilian real weighed on prices.

FUNDAMENTALS

* The most active soybean futures on the Chicago Board Of Trade were down nearly 2 percent for the week, the biggest weekly decline in nearly two months.

* Soybeans hit a low of $9.42-3/4 a bushel on Thursday, the lowest since April 19.

* The most active corn futures were down more than 1 percent for the week, the first weekly slide in a month.

* The most active wheat futures down nearly 1.5 percent for the week, taking two-week losses to more than 3.5 percent.

* Soybeans were under pressure as the Brazilian real slumped following corruption allegations against the country's President Michael Temer.

* A weaker real may encourage farmers to accelerate sales in order to earn more money for their crop.

* Brazil just completed the harvest of its largest-ever soy harvest, estimated by the U.S. Department of Agriculture at 111.6 million tonnes. But farmers had sold only about half of it by early May, compared with the five-year average of 65 percent.

* The USDA reported export sales of U.S. wheat in the latest reporting week at 640,600 tonnes (old and new marketing years combined), topping a range of trade expectations.

* Wheat was also supported by the purchase of two U.S. cargoes by Eygpt.

MARKET NEWS

* The U.S. dollar reversed early losses against a basket of major currencies on Thursday after stronger-than-expected U.S. economic data put the focus back on a widely anticipated increase in interest rates by the Federal Reserve.

* Oil futures rose in early trading on Friday on growing optimism that big producing countries will extend output cuts to curb a persistent glut in crude, with key benchmarks heading for a second week of gains.

* Wall Street rebounded on Thursday from its biggest selloff in more than eight months with help from a move to loosen internet regulations and strong economic data.

DATA AHEAD (GMT)

0600 Germany Producer prices Apr 0800 Euro zone Current account Mar 1400 Euro zone Consumer confidence May

Grains prices at 0044 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 426.75 1.00 +0.23% -0.06% 435.29 47 CBOT corn 366.75 0.75 +0.20% -1.28% 369.60 51 CBOT soy 946.25 1.50 +0.16% -3.02% 963.11 38 CBOT rice 10.77 -$0.12 -1.06% -1.28% $10.18 71 WTI crude 49.46 $0.11 +0.22% +0.79% $49.46 63

Currencies

Euro/dlr $1.111 $0.000 +0.04% -0.47% USD/AUD 0.7415 0.000 -0.01% -0.22%

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)