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GRAINS-Wheat edges higher as fears for spring supplies resurface

SYDNEY, July 27 (Reuters) - U.S. wheat edged higher on Thursday, further recovering from a near-one month low touched in the previous session as traders digested reports of weather damage to large swathes of a key producing region.

FUNDAMENTALS

* The most active wheat futures on the Chicago Board Of Trade rose 0.5 percent to $4.80-1/4 a bushel by 0110 GMT, having closed up 0.8 percent on Wednesday when prices touched a near one-month low of $4.73 a bushel.

* The most active soybean futures were little changed at $9.99-1/2 a bushel, having firmed 0.8 percent on Wednesday.

* The most active corn futures were also little changed at $3.86-1/4 a bushel, having gained 1 percent in the previous session after prices had earlier hit a low of $3.79-1/4 a bushel - the lowest since June 30.

* Spring wheat crops in central and northwestern North Dakota were showing the effects of hot, dry conditions and yield prospects were down sharply from a year ago, scouts on an annual crop tour said Wednesday.

* Traders were closely monitoring the weather as both corn and soybeans were in key development periods. Some reports of less-than-expected rain in western Iowa lent support in afternoon trading.

* Spring wheat crops in central and northwestern North Dakota were showing the effects of hot, dry conditions and yield prospects were down sharply from a year ago, scouts on an annual crop tour said Wednesday.

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.

0600 Germany GfK consumer sentiment index Aug 0800 Euro Zone M3 money supply indicator June 1230 U.S. Chicago Fed national activity index June 1230 U.S. U.S. job claims weekly 1230 U.S. Durable goods orders Jun

Grains prices at 0110 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 480.25 2.50 +0.52% +1.32% 502.40 37 CBOT corn 386.25 0.25 +0.06% +1.05% 393.58 44 CBOT soy 999.50 -0.75 -0.07% +0.68% 977.64 47 CBOT rice 12.25 -$0.03 -0.24% -0.45% $11.85 73 WTI crude 48.60 -$0.15 -0.31% +1.48% $45.38 71

Currencies

Euro/dlr $1.172 -$0.001 -0.08% +0.62% USD/AUD 0.8002 0.000 +0.01% +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 Richard Pullin)