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GRAINS-Wheat falls to 17-day low as rains arrive across U.S. Plains

SYDNEY, July 17 (Reuters) - U.S. wheat prices dropped for a fourth consecutive session to hit a 17-day low as rains fell across a key U.S. growing region, easing fears of tight supply following recent prolonged hot, dry weather.

FUNDAMENTALS

* The most active wheat futures on the Chicago Board of Trade were down 1.3 percent at $5.04 a bushel, near the session-low of $5.02-3/4 a bushel - the weakest since June 30. Wheat closed down 0.2 percent on Wednesday.

* The most active corn futures dropped 1.5 percent to $3.83-1/2 a bushel, having gained 1.7 percent in the previous session.

* The most active soybean futures fell 0.6 percent to $9.95-1/2 a bushel, after firming 1.4 percent on Friday.

* Wheat and corn prices were under pressure as rains soaked areas of the U.S. Plains, aiding crops that have been stressed by dry weather.

* The U.S. Department of Agriculture last week forecast ample global grain and soy supplies.

* The USDA on Friday said exporters sold 1.3 million tonnes of soybeans to China, an announcement that followed a Thursday signing ceremony between Chinese soy buyers and American sellers in Iowa.

MARKET NEWS

* The euro got off to an unusually quiet start in Asia on Monday, having posted its worst weekly performance in three months, as investors await more developments and ratings downgrades from Europe.

* Oil edged lower in volatile trading on Friday, posting a second consecutive weekly loss as caution about Europe's debt crisis and year-end positioning continued to spark selling into rallies.

* A rally in U.S. stocks fizzled, leaving major indexes with modest gains on Friday, as Wall Street was torn between hope that U.S. economic data signals better times ahead and fear Europe's debt crisis will engulf world economies.

Grains prices at 0050 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 504.00 -6.75 -1.32% -1.51% 492.95 52 CBOT corn 383.50 -6.00 -1.54% +0.13% 396.61 46 CBOT soy 995.50 -6.00 -0.60% +0.81% 959.55 55 CBOT rice 11.79 $0.11 +0.94% +0.26% $11.70 64 WTI crude 46.65 $0.11 +0.24% +1.24% $45.15 63

Currencies

Euro/dlr $1.147 $0.000 -0.01% +0.62% USD/AUD 0.7820 -0.001 -0.10% +1.22%

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)