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GRAINS-Wheat extends losses as market awaits damage reports

U.S. wheat fell 0.5 percent on Thursday to extend two-day losses to nearly 2.5 percent, as traders paused a run of recent gains to assess damage from recent unfavorable weather across the United States and Europe.

FUNDAMENTALS

* The most active wheat futures on the Chicago Board Of Trade fell 0.5 percent to $4.62-1/4 a bushel, having closed down 1.7 percent on Wednesday.

* The most active soybean futures were unchanged at $9.18-1/2 a bushel, having closed down 1 percent on Wednesday.

* The most active corn futures fell 0.1 percent to $3.68-1/2 a bushel, having closed down 0.3 percent in the previous session.

* The rally in wheat this month has been fueled by deteriorating conditions for U.S. spring wheat in the northern Plains and concerns over the impact of a heat wave in France, the European Union's top producer.

* Traders begin to adjust positions ahead of the U.S. Department of Agriculture's closely watched June 30 acreage and quarterly stocks reports.

MARKET NEWS

* The dollar slipped from a one-month peak against a basket of currencies on Wednesday, as losses on Wall Street stocks spurred some traders to book profits on gains tied to expectations of possibly another U.S. interest rate increase later this year.

* Oil prices rose on Thursday for the first time in three days after U.S. crude and gasoline stockpiles fell, but investors are looking for more signs that output cuts by OPEC and some other producers are ending a three-year glut.

* The S&P 500 and Dow stock indexes were weighed down by falling energy shares as oil prices fell on Wednesday and added to investor concerns about low inflation, while healthcare and technology stocks helped lift the Nasdaq Composite index.

DATA AHEAD (GMT)

0600 France Business climate Jun 1230 U.S. Weekly jobless claims 1300 U.S. Monthly home price index Apr 1400 Euro zone Consumer confidence flash Jun 1400 U.S. Leading index May

Grains prices at 0058 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 462.25 -2.25 -0.48% -2.17% 439.89 62 CBOT corn 368.25 -0.50 -0.14% -0.47% 373.89 37 CBOT soy 918.50 -0.25 -0.03% -1.00% 938.44 32 CBOT rice 11.20 $0.03 +0.22% -1.50% $11.07 50 WTI crude 42.62 $0.09 +0.21% -1.41% $47.33 22

Currencies

Euro/dlr $1.116 $0.000 -0.03% +0.26% USD/AUD 0.7555 0.001 +0.07% -0.32%

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