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GRAINS-Corn extends rally as hot, dry weather expected to continue

SYDNEY, July 19 (Reuters) - U.S. corn edged higher on Wednesday, extending two-day gains to nearly 1 percent, as forecasts for continued dry weather stoked fears of widespread production losses.

FUNDAMENTALS

* The most active corn futures on the Chicago Board Of Trade were up 0.2 percent to $3.91-1/2 after gaining 0.7 percent in the previous session.

* The most active soybean futures were up 0.3 percent at $10.05 a bushel, having firmed 0.4 percent on Tuesday.

* The most active wheat futures were little changed at $5.04 a bushel, having closed down 0.4 percent on Tuesday.

* The U.S. Department of Agriculture late on Monday said 40 percent of the U.S. corn crop was going through the silking portion of its pollination phase as of Sunday. Hot temperatures and a lack of moisture could limit yield potential for corn plants.

* USDA also slashed good-to-excellent condition ratings for the corn, soybean and spring wheat crops, a move that analysts had anticipated.

* The state grain buyer for top global wheat importer Egypt said it purchased 300,000 tonnes of Russian, Romanian and French wheat.

* U.S. wheat remains uncompetitive, wieghing on prices.

MARKET NEWS

* The dollar hit its lowest against the euro and Swiss franc in more than a year on Tuesday, with the broader dollar index touching a more than 10-month low, on reduced confidence in U.S. President Donald Trump's agenda and jitters over hawkish central banks abroad.

* Oil prices rose slightly on Tuesday as Saudi exports fell and solid demand soaked up some of what is seen as an oversupplied market, but Ecuador's decision to opt out of an OPEC-led supply reduction pact complicated the outlook.

* A Netflix rally boosted the Nasdaq Composite to a record high on Tuesday while Goldman Sachs Group Inc dragged the Dow lower as earnings take center stage on Wall Street.

DATA/EVENTS (GMT)

1100 U.S. Mortgage Market Index weekly 1230 U.S. Building Permits June

Grains prices at 0112 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 504.00 0.25 +0.05% -0.40% 496.73 51 CBOT corn 391.50 0.75 +0.19% +0.90% 396.31 54 CBOT soy 1005.00 3.25 +0.32% +0.75% 964.38 59 CBOT rice 11.86 -$0.01 -0.04% +1.58% $11.71 64 WTI crude 46.25 -$0.15 -0.32% +0.50% $45.03 57

Currencies

Euro/dlr $1.154 -$0.001 -0.10% +0.54% USD/AUD 0.7927 0.001 +0.15% +1.65%

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)