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GRAINS-Wheat slips further from 2-year peak, supplies seen ample

* Wheat stocks seen rising despite some crop concerns

* Weather driven run-up in corn and soy prices stalls (Adds quotes, updates prices)

LONDON, July 7 (Reuters) - U.S. wheat futures were lower on Friday, retreating further from a two-year high touched earlier in the week, while corn and soybean prices also weakened.

The most active wheat futures on the Chicago Board of Trade was down 1.2 percent at $5.32-1/2 a bushel at 1122 GMT, after closing down 3.8 percent on Thursday.

Wheat hit a two-year high earlier in the week of $5.74-1/2 a bushel.

The price retreat comes despite further forecasts for hot dry weather in key U.S. wheat-growing regions that have sparked worries about widespread production losses.

The United Nations Food and Agriculture Organization (FAO) this week cut its forecast for global wheat production in 2017/18 but still saw stocks at the end of the season climbing to a record level.

"Even if there were to be any downward adjustments of the U.S. crop, there is thus a sufficiently large cushion before any inventory reduction would ensue," Commerzbank said in a market note.

December wheat futures in Paris fell 0.3 percent to 183.75 euros ($209.70) a tonne.

The CBOT's most active corn futures fell 0.3 percent to $4.01-1/2 a bushel, after closing down 0.3 percent in the previous session.

Dealers said the recent run-up, fueled partly by concerns that hot weather in the U.S. could stress the crop in the world's top producer, appeared to have stalled.

"The market, with a modest weather worry at its back, had managed to rally to the top of the recent trading range. But it seems that is not enough to push the market up and out of that range," Commonwealth Bank of Australia analyst Tobin Gorey said.

Private analytics firm Informa Economics on Thursday projected U.S. 2017 corn production at 14.166 billion bushels based on an average yield of 169.7 bushels per acre, trade sources said. That compares with USDA forecasts of 14.065 billion bushels and 170.7 bushels per acre.

The most active soybean futures fell 0.23 percent to $9.97 a bushel, also retreating slightly after rising earlier in the week.

($1 = 0.8763 euros) (Additional reporting by Colin Packham in Sydney; Editing by Joseph Radford and Edmund Blair)