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GRAINS-Corn falls 1 pct to linger near 6-week low

SYDNEY, Aug 14 (Reuters) - U.S. corn fell 1 percent on Monday as the U.S. Department of Agriculture's forecast larger-than-expected production pushed prices towards a six-week low.

FUNDAMENTALS

* The most active corn futures on the Chicago Board Of Trade fell 1 percent to $3.71 a bushel by 0137 GMT after closing up 1 percent on Friday.

* Corn fell to $3.70-1/4 a bushel late last week - the lowest since June 30.

* The most active soybean futures were down 0.9 percent to $9.37 a bushel, having firmed 0.5 percent on Friday.

* The most active wheat futures were down 1.3 percent to $4.33-3/4 a bushel, having closed down 0.3 percent on Friday.

* The USDA on Thursday projected the U.S. corn yield at 169.5 bushels per acre (bpa), below its previous forecast of 170.7, but well above the average trade estimate of 166.2 bpa.

* The USDA also wrong-footed investors by increasing its soybeans yield forecast to 49.4 bpa from 48.0, rather than trimming it as expected.

* Wheat markets remained dampened by the USDA's supply outlook, which included a sharp increase in projected global wheat stocks in 2017-18, supported by increased estimates for Russian, Ukrainian and Kazakh crops.

* Russian consultancies SovEcon and IKAR on Friday gave similar estimates for the world's biggest wheat exporter last season.

MARKET NEWS

* The dollar edged higher against the yen on Monday, trading above last week's near 4-month low, with rising tensions between the United States and North Korea seen as the key to the near-term outlook.

* Oil prices were steady early on Monday, supported by strong demand and falling inventories, but still under pressure from high output.

DATA AHEAD (GMT)

0200 China Industrial output Jul 0200 China Retail sales Jul 0200 China Urban investment Jul 0900 Euro zone Industrial production Jun

Grains prices at 0137 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 433.75 -5.50 -1.25% -1.53% 492.43 19 CBOT corn 371.00 -3.75 -1.00% +0.00% 389.78 36 CBOT soy 937.00 -8.00 -0.85% -0.35% 993.07 29 CBOT rice 12.49 -$0.01 -0.08% +1.92% $12.12 63 WTI crude 48.80 -$0.02 -0.04% +0.43% $47.51 50

Currencies

Euro/dlr $1.182 $0.000 +0.03% +0.46% USD/AUD 0.7906 0.002 +0.22% +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 Richard Pullin)