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GRAINS-Soybeans fall to 6-week low, set for third straight weekly loss

SYDNEY, May 26 (Reuters) - U.S. soybeans edged lower to hit a six-week low on Friday as weak oil prices were set to pressure the oilseed, which is used to make ethanol, towards a third straight weekly decline.

FUNDAMENTALS

* The most active soybean futures on the Chicago Board Of Trade down more than 1.5 percent for the week, its biggest weekly loss in two months.

* Soybeans hit a low of $9.36-1/2 a bushel on Friday - the lowest since April 11.

* The most active corn futures were down about 1 percent for the week, the biggest weekly fall since April 21.

* The most active wheat futures were down 1 percent for the week.

* Soybeans are a feedstock for ethanol and demand for the alternative fuel eases when oil prices decline.

* The U.S. Agriculture Department reported weekly export sales of U.S. corn at 457,700 tonnes (old and new crop years combined), below a range of trade expectations.

MARKET NEWS

* Commodity currencies got off to a shaky start on Friday, having tracked oil prices lower, after a meeting of OPEC countries disappointed some investors who had hoped for larger production cuts.

* Oil prices tumbled 5 percent on Thursday as the extension of output curbs by OPEC and other producing countries disappointed investors who had hoped for larger cuts, leading to the biggest daily percentage slide in crude prices since early March.

* The S&P 500 and Nasdaq hit record closing highs on Thursday, with the market propped up by gains in the consumer discretionary sector after strong reports from Best Buy and other retailers.

DATA AHEAD (GMT)

1230 U.S. Durable goods Apr 1230 U.S. GDP 2nd estimate Q1 1400 U.S. Univ of Michigan sentiment index final May

Grains prices at 0132 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 430.50 -0.25 -0.06% -0.46% 433.07 55 CBOT corn 369.25 0.00 +0.00% -0.54% 369.46 53 CBOT soy 936.75 -2.75 -0.29% -1.21% 961.68 33 CBOT rice 10.86 -$0.07 -0.69% -1.81% $10.26 59 WTI crude 48.85 -$0.05 -0.10% -4.89% $49.03 43

Currencies

Euro/dlr $1.120 -$0.001 -0.06% -0.13% USD/AUD 0.7444 -0.001 -0.11% -0.77%

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)