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GRAINS-Wheat eases after 2-session rally, U.S. weather in focus

SINGAPORE, June 19 (Reuters) - Chicago wheat slid almost 1 percent on Monday as the market took a breather after rallying around 5 percent in the last two sessions on the back of dry weather hitting U.S. yields. Corn gave up 1.5 percent, while soybean prices were little changed in early Asian trade.

FUNDAMENTALS

* Chicago wheat climbed to its highest in almost a year at $4.68-1/2 a bushel on Friday as dry weather threatened to reduce U.S. spring wheat crop production.

* Reports of disappointing yields in early harvesting of the hard red winter wheat provided additional support.

* Forecaster Commodity Weather Group said that the rain outlook was still very limited in the western Dakotas and Montana during the next two weeks, which will hinder development of spring wheat in those areas.

* Concerns about crops in the Black Sea region buoyed wheat prices. Wheat exports from Russia, Ukraine and Kazakhstan were expected to fall 3.3 percent to 50.4 million tonnes in the upcoming season, which starts on July 1, according to a Reuters poll. Production was also seen falling.

* The monthly U.S. National Oilseed Processors Association report released on Thursday, which showed crushings well above analyst forecasts, was still adding strength to the soybean market.

* Large speculators trimmed their net short position in Chicago Board of Trade corn futures in the week to June 13, regulatory data released on Friday showed.

* The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and trimmed their net short position in soybeans.

MARKET NEWS

* Asian stocks began the week modestly higher on Monday after Wall Street offered little guidance, while sterling and the euro steadied before the start of talks over the terms of Britain's exit from the European Union.

DATA AHEAD (GMT)

0130 China House prices May

Grains prices at 0129 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 461.00 -4.25 -0.91% +1.60% 436.21 69 CBOT corn 378.25 -5.75 -1.50% -0.33% 373.97 51 CBOT soy 938.75 -0.25 -0.03% +0.43% 943.28 58 CBOT rice 11.34 -$0.06 -0.57% -1.22% $10.94 60 WTI crude 44.51 -$0.23 -0.51% +0.11% $47.72 31

Currencies

Euro/dlr $1.120 $0.000 -0.02% +0.47% USD/AUD 0.7624 0.001 +0.11% +0.63%

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

(Reporting by Naveen Thukral; Editing by Joseph Radford)