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GRAINS-Wheat eases from one-year high, but output fears cap losses

SYDNEY, June 26 (Reuters) - U.S. wheat edged lower on Monday, retreating from a one-year high touched in the previous session, although concerns over production losses in the United States and Europe provided a floor.

FUNDAMENTALS

* The most active wheat futures on the Chicago Board Of Trade fell 0.3 percent to $4.72 a bushel, having closed up 2.7 percent on Friday when prices hit a high of $4.80-1/2 a bushel - the highest since June 2016.

* The most active soybean futures rose 0.5 percent to $9.08-3/4 a bushel, having closed little changed on Friday.

* The most active corn futures rose 0.8 percent to $3.60-3/4 a bushel, having closed down 1.4 percent in the previous session when prices hit a low of $3.56-1/2 a bushel - the lowest since March 31.

* Wheat supported as hot temperatures and dry conditions this year in the spring wheat growing area of the Dakotas damaged young wheat plants.

* The state of French soft wheat declined sharply in the week to June 19, data from farming agency FranceAgriMer showed, suggesting crops were already suffering from dry conditions before a heatwave last week.

* Corn under pressure from forecasts for largely benign weather across key U.S. growing regions.

MARKET NEWS

* The dollar sagged against its major peers on Monday, losing traction as U.S. Treasury yields stayed low amid fading expectations that the Federal Reserve to hike interest rates again later this year.

* Oil prices rose early on Monday on a weaker dollar, but increased U.S. drilling activity stoked worries that a global supply glut would persist despite efforts by some producers to curb output.

* U.S. stocks ended higher on Friday after a last-minute trading spike and a technology sector gain offset weakness in financial stocks and sent the Nasdaq higher, giving it a weekly gain for the first time in three weeks.

DATA AHEAD (GMT)

0800 Germany Ifo business climate Jun 1230 U.S. Durable goods May 1230 U.S. National activity index May 1430 U.S. Dallas Fed manufacturing index Jun

Grains prices at 0144 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 472.00 -1.50 -0.32% +2.33% 442.03 55 CBOT corn 360.75 3.00 +0.84% -0.55% 372.98 31 CBOT soy 908.75 4.25 +0.47% +0.53% 934.09 28 CBOT rice 11.23 -$0.03 -0.22% +1.13% $11.11 51 WTI crude 43.40 $0.39 +0.91% +1.54% $47.03 35

Currencies

Euro/dlr $1.119 $0.000 +0.01% +0.39% USD/AUD 0.7571 0.001 +0.08% +0.40%

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)