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GRAINS-Wheat jumps 1.5 pct as hot, dry weather threatens production

SYDNEY, July 11 (Reuters) - U.S. wheat rose 1.5 percent on Tuesday as forecasts for hot, dry weather across large growing regions stoked fears of widespread production losses, pushing prices towards a two-year high.

FUNDAMENTALS

* The most active wheat futures on the Chicago Board Of Trade rose 1.5 percent to $5.58 a bushel, having closed up 2.8 percent on Tuesday.

* The most active soybean futures were up 0.6 percent to $10.45-1/4 a bushel, near the session high of $10.47 a bushel - the highest since March 6. Soybeans firmed 2.3 percent on Monday.

* The most active corn futures rose 0.4 percent to $4.16-1/2 a bushel, near the session high of $4.17-1/4 a bushel - the highest since June 2016. Corn closed up 2.5 percent on Monday.

* Wheat firms as hot, dry weather expected across key growing regions, fueling more concerns about the state of the crops.

* The USDA rated 35 percent of U.S. spring wheat crop at good to excellent, matching analyst expectations.

* The USDA rated 65 percent of the U.S. corn crop in good to excellent condition, down from 68 percent the previous week. Analysts surveyed by Reuters had expected a drop of 1 percentage point.

MARKET NEWS

* The dollar rose against the yen on Monday as the Bank of Japan's offer last week to buy an unlimited amount of bonds drew investors' focus to the divergent monetary policy outlook between the U.S. Federal Reserve and the Bank of Japan.

* Oil prices rose modestly on Monday, but increased drilling activity in the United States and uncertainty over Libyan and Nigerian production cuts clouded the future supply outlook.

* U.S. stocks edged higher on Monday, led by gains in technology stocks as investors were optimistic ahead of earnings.

DATA AHEAD (GMT)

1000 U.S. Small business confidence index Jun 1255 U.S. Job openings (JOLTS) May 1400 U.S. Wholesale inventories May

Grains prices at 0024 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 558.00 8.00 +1.45% +4.30% 483.64 71 CBOT corn 416.50 1.75 +0.42% +2.90% 397.30 81 CBOT soy 1045.25 6.00 +0.58% +2.93% 948.98 93 CBOT rice 12.03 $0.00 +0.00% +0.84% $11.63 73 WTI crude 44.54 $0.14 +0.32% +0.70% $45.44 46

Currencies

Euro/dlr $1.139 -$0.001 -0.06% -0.07% USD/AUD 0.7605 0.000 +0.00% +0.00%

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)