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GRAINS-Wheat prices drop despite fears for U.S. spring crop

SYDNEY, July 31 (Reuters) - U.S. wheat prices fell 1 percent on Monday, retreating for the first time in four sessions, with fears of decreased production of high quality grain offset by ample global supply.

FUNDAMENTALS

* The most active wheat futures on the Chicago Board of Trade were down 1 percent at $4.76-3/4 a bushel by 0051 GMT, after closing up 0.3 percent on Friday.

* The most active soybeans futures were down 1.4 percent at $9.98-3/4 a bushel, after firming 0.55 percent on Friday.

* The most active corn futures declined 1.35 percent to $3.82-3/4 a bushel, having closed little changed in the previous session.

* Hot and dry weather during the growing season slashed yield prospects for U.S. hard red spring wheat to the lowest in nearly a decade, scouts on an annual crop tour said last week.

* A U.S. court said on Friday the U.S. Environmental Protection Agency erred when setting standards for how much renewable fuel must be included in fuel sold in the United States and ordered the agency to try again, according to a court filing.

* The EPA had sought to lower the amount of biofuels that needed to be mixed into U.S. fuel.

MARKET NEWS

* The U.S. dollar was broadly lower on Friday as a combination of uninspiring U.S. economic data and political uncertainty kept traders biased toward the euro and other world currencies.

* Oil prices rose to their highest levels since May early on Monday as a dip in U.S. output tightened the market and the threat of sanctions against Venezuela kept traders on edge.

DATA (GMT)

0500 Japan Constructions orders Yearly 0500 Japan Housing starts Yearly 0600 Germany Retail sales real Monthly 0600 Germany Retail sales real Yearly 0830 U.K. BOE Consumer credit June 0830 U.K. Mortgage lending June 0830 U.K. Mortgage approvals June 0900 Eurozone Inflation July 0900 Eurozone Unemployment rate June 1345 U.S. Chicago PMI June 1400 U.S. Pending home sales index June 1400 U.S. Pending sales change June 1430 U.S. Dallas Fed mfg bus index July

Grains prices at 0051 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 476.00 -5.00 -1.04% -0.78% 502.62 34 CBOT corn 382.75 -5.25 -1.35% -1.29% 392.36 40 CBOT soy 998.75 -14.25 -1.41% -0.87% 981.89 46 CBOT rice 12.39 -$0.03 -0.24% +0.57% $11.90 77 WTI crude 49.73 $0.02 +0.04% +1.41% $45.74 79

Currencies

Euro/dlr $1.174 -$0.001 -0.09% +0.54% USD/AUD 0.7960 -0.003 -0.33% -0.04%

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)