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GRAINS-Corn falls to 7-week low as dry weather fears ease

* Rains forecast for Midwest corn and soybean crops

* Soybeans fall for first time in four sessions

* Wheat edges higher as threat to spring crop lingers

SYDNEY, Aug 21 (Reuters) - U.S. corn fell nearly 1 percent on Monday as forecasts for rain eased fears of widespread production losses due to recent dry weather, pushing prices to around a seven-week low. Soybeans fell for the first time in four sessions, while wheat edged higher for a second straight session. The most active corn futures on the Chicago Board Of Trade were down 0.7 percent at $3.63-1/4 a bushel by 0341 GMT, having gained 0.4 percent in the previous session. The fall matched last week's low, which was the lowest since June 27. "Climatic conditions have improved and whatever threat there is to some crops has already been priced in," said Phin Ziebell, agribusiness economist, National Australia Bank. Weather forecasts call for favourable rains for Midwest corn and soybean crops, analysts said, although there was still uncertainty as to whether showers would reach all of the areas affected by very dry conditions earlier this summer.

The recent stretch of good weather in major production states such as Iowa and Illinois has led to improved ratings for the soybean crop, reinforcing the bearish tone on prices. The most active soybean futures were down 0.4 percent to $9.34-1/2 a bushel, having firmed 0.5 percent on Friday. The most active wheat futures edged up 0.1 percent to $4.43 a bushel, having closed up 0.4 percent on Friday. Analysts said wheat continues to gain some support from fears of U.S. production losses, though forecasts for rain across some regions provided a cap to gains.

Grains prices at 0341 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 443.00 0.50 +0.11% +0.57% 497.72 17 CBOT corn 363.25 -2.50 -0.68% -0.27% 383.32 32 CBOT soy 934.50 -3.25 -0.35% +0.16% 980.63 41 CBOT rice 12.50 $0.06 +0.48% +2.59% $12.16 51 WTI crude 48.53 $0.02 +0.04% +3.06% $47.87 55

Currencies

Euro/dlr $1.175 -$0.001 -0.07% +0.25% USD/AUD 0.7927 0.000 +0.00% +0.55%

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)