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GRAINS-Wheat firms 1 pct, set for biggest weekly loss in more than 6 mths

SYDNEY, July 14 (Reuters) - U.S. wheat prices rose 1 percent on Friday to rebound from a two-week low touched in the previous session, though the grain was poised to record its biggest weekly losses in more than six months as fears of tight U.S. supplies ease.

FUNDAMENTALS

* The most active wheat futures on the Chicago Board of Trade are down nearly 3.5 percent for the week, the biggest weekly fall since Dec.23, 2016.

* The most active soybean futures were down more than 2.5 percent for the week, the first weekly slide in three weeks.

* The most active corn futures were down nearly 5 percent for the week, after previously posting two-week gains of nearly 13 percent.

* Grain prices are under pressure from forecasts for cooler temperatures across key U.S. growing regions, easing fears of widespread production losses from unfavorable weather.

* The U.S. Department of Agriculture's July report increased U.S. winter wheat production while reducing projected output of spring wheat -- the variety that has been hit by drought and heat in the northern U.S. Plains -- by less than expected.

* The USDA also raised its forecasts of end-2017/18 U.S. corn stocks to 2.325 billion bushels, up from 2.110 billion in June and above an average of analyst estimates of 2.181 billion.

MARKET NEWS

* The dollar trod water against a group of peers early on Friday, as currency investors remained cautious ahead of U.S. inflation data due later in the session, which is expected to set the greenback's near-term direction.

* Oil prices rose 1.3 percent on Thursday after much stronger demand in China overshadowed a downbeat report by the International Energy Agency (IEA) that showed higher production by key OPEC exporters.

* Wall Street posted slight gains on Thursday and the Dow hit another record high close, with financials rising ahead of profit reports due Friday from several big U.S. banks.

DATA (GMT)

0600 Germany Final consumer prices Jun 0645 France Consumer prices (INSEE) Jun 1230 U.S. Producer prices Jun 1230 U.S. Jobless claims weekly

Grains prices at 0125 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 516.75 5.00 +0.98% -3.77% 491.18 46 CBOT corn 384.75 1.75 +0.46% -3.51% 396.85 36 CBOT soy 987.50 0.00 +0.00% -4.50% 956.92 50 CBOT rice 11.70 -$0.05 -0.47% -1.14% $11.69 48 WTI crude 46.03 -$0.05 -0.11% +1.19% $45.16 59

Currencies

Euro/dlr $1.141 $0.001 +0.09% -0.04% USD/AUD 0.7739 0.001 +0.17% +0.83%

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

(Reporting by Colin Packham; Editing by Joseph Radford)