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GRAINS-Corn prices inch up, but USDA forecast caps gains

SYDNEY, Sept 13 (Reuters) - U.S. corn edged up on Wednesday to move away from a two-week low touched the day before, but a U.S. Department of Agriculture forecast for higher North American production kept a lid on gains.

FUNDAMENTALS

* The most active corn futures on the Chicago Board of Trade were up 0.4 percent at $3.52-3/4 a bushel by 0102 GMT. They slumped 1.7 percent in the previous session, when prices marked their weakest since Aug. 31 at $3.45-1/2 a bushel.

* The most active soybean futures were up 0.6 percent at $9.55-3/4 a bushel, having closed down 1 percent on Tuesday.

* The most active wheat futures rose 0.4 percent to $4.43-3/4 a bushel, after ending Tuesday down 1.7 percent.

* The USDA in a monthly report raised its estimate of the average U.S. 2017 corn yield to 169.9 bushels per acre (bpa) from its August estimate of 169.5 bpa, above an average of analyst expectations for 168.2 bpa.

* The USDA increased its soybean yield estimate to 49.9 bpa, from 49.4 in August, topping a range of trade expectations.

* The USDA trimmed its world wheat ending stocks forecast for 2017/18 to 263.14 million tonnes, from 264.69 million in August.

MARKET NEWS

* The dollar extended its sharp rally against the yen on Wednesday, although it was capped against the euro with a potentially supportive spike in U.S. yields neutralised by a similar move by their German counterparts.

* Oil prices were mixed early on Wednesday, but largely held on to gains in the previous session after OPEC said it expected higher demand for its crude next year.

* The major Wall Street indexes hit record closing highs on Tuesday, with financial stocks leading the charge, but gains were stunted by a decline in Apple Inc shares after it unveiled its latest line of iPhones.

DATA AHEAD (GMT)

0600 Germany Consumer prices final Aug 0600 Germany Wholesale price index Aug 0900 Euro zone Employment Q2 0900 Euro zone Industrial production Jul

Grains prices at 0102 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 443.75 1.75 +0.40% +2.07% 450.27 53 CBOT corn 352.75 1.25 +0.36% -1.33% 364.05 44 CBOT soy 955.75 5.25 +0.55% -0.44% 950.02 51 CBOT rice 12.95 $0.00 +0.00% +2.33% $12.65 67 WTI crude 48.30 $0.07 +0.15% +0.48% $48.08 53

Currencies

Euro/dlr $1.197 $0.001 +0.06% +0.18% USD/AUD 0.8025 0.001 +0.09% -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)