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GRAINS-Corn prices move away from 6-wk low, but set to finish week down 2 pct

SYDNEY, Aug 11 (Reuters) - U.S. corn prices on Friday edged away from a six-week low touched in the previous session, though the grain was poised for weekly losses of 2 percent after the U.S. government forecast a bigger-than-expected crop.

FUNDAMENTALS

* The most active corn futures on the Chicago Board of Trade were up 0.7 percent at $3.73-1/2 at 0132 GMT, but were set for their third weekly slide in a row.

* Corn on Thursday hit its lowest since June 30 at $3.70-1/4 a bushel.

* The most active soybean futures are down nearly 1.5 percent for the week, extending losses into a third consecutive week.

* The most active wheat futures are down 2.5 percent for the week, their fifth straight weekly loss.

* The U.S. Department of Agriculture on Thursday projected the U.S. corn yield at 169.5 bushels per acre (bpa), below its previous forecast of 170.7 but above an average of trade estimates for 166.2 bpa.

* The USDA pegged soybeans yields at 49.4 bpa, above its previous forecast of 48.0, surprising analysts who expected a reduction.

* Both figures implied larger harvests than most analysts expected, given planting delays and dry conditions in parts of the Midwest.

* The USDA estimated U.S. production of spring wheat other than durum at 402 million bushels, down from 423 million in July but well above the average trade estimate of 393 million.

MARKET NEWS

* The dollar set an eight-week low against the yen on Friday as escalating tensions between the United States and North Korea triggered yet more investor flight to safety.

* Oil prices were little changed in early Asian trading on Friday after retreating in the previous session, weighed down by ongoing global glut concerns despite a bigger-than-expected draw in U.S. crude inventories.

* The S&P 500 index had its biggest one-day drop in almost three months on Thursday as investors fled riskier assets, with technology stocks leading the charge, in response to an increasingly aggressive exchange of threats between the United States and North Korea.

DATA AHEAD (GMT)

0600 Germany Consumer prices final Jul 1230 U.S. Consumer prices Jul 1500 U.S. Cleveland Fed CPI Jul

Grains prices at 0121 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 442.75 2.25 +0.51% -3.65% 495.63 25 CBOT corn 373.50 2.50 +0.67% -3.30% 390.48 37 CBOT soy 944.25 4.00 +0.43% -2.98% 993.63 28 CBOT rice 12.29 $0.04 +0.33% -0.16% $12.09 55 WTI crude 48.51 -$0.08 -0.16% -2.12% $47.40 46

Currencies

Euro/dlr $1.177 $0.000 -0.04% +0.07% USD/AUD 0.7854 -0.002 -0.25% -0.41%

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)