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GRAINS-Wheat set for biggest quarterly loss in 2 years

* Wheat down almost 14 pct in July-Sept, 1st quarterly loss in 4

* Soybeans eye monthly gain, U.S. harvest keeps lid on prices

(Adds details, quotes) SINGAPORE, Sept 29 (Reuters) - Chicago wheat slid on Friday with the market facing its biggest quarterly decline in two years as record world supplies dragged down prices, although concerns over higher quality wheat production are likely to prevent further losses. U.S. soybeans edged down, but were poised to finish the month higher on the back of strong Chinese demand. The Chicago Board of Trade most-active wheat contract is down almost 14 percent in July-September, the biggest fall since the third quarter of 2015. For the month, wheat has gained about 4 percent, its first monthly gain in three. Soybeans have added 1.4 percent in September, recouping some of the 6.2 percent loss in the previous month. Corn has been down nearly 2 percent this month, extending losses into a second straight month. "Overall if you look at the U.S. crop and other producers, the Australian crop is the first one that has reversed the trend," said Brett Cooper, Asia head of agricultural commodities at brokerage INTL FCStone in Sydney. "At the top level, the wheat balance sheet is not problematic. The thing to watch is when you break it down to class and quality. There is ongoing reduction in high-protein wheat." The International Grains Council (IGC) has raised its forecast for world grain production in 2017/18, with the crop now expected to be the second-largest in history. The inter-governmental body, in a monthly report published on Thursday, put total grains production at 2.069 billion tonnes, up 19 million tonnes from its previous forecast and now only trailing last season's record 2.133 billion tonnes. Russia is set to export around 45 million tonnes of grain in the 2017/18 marketing year, including 30 million tonnes of wheat, Russian Agriculture Minister Alexander Tkachev said on Thursday, with production hitting a record high. The U.S. Department of Agriculture (USDA) will issue the small grains report on Friday. Analysts surveyed by Reuters on average expect the government to lower its estimate of U.S. 2017 wheat production. For corn, analysts expect the USDA to report U.S. Sept. 1 corn stocks at 2.353 billion bushels, which would be the largest since 1988. The USDA reported the third-largest weekly soybean export sales total on record, at just over 3.1 million tonnes for old- and new-crop marketing years combined. Of the total, 1.4 million tonnes of soybeans were earmarked for China, the world's top buyer. Commodity funds were net sellers of CBOT corn, wheat, soybean, soymeal and soyoil futures contracts on Thursday, traders said.

Grains prices at 0322 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 452.50 -2.50 -0.55% -1.95% 441.99 61 CBOT corn 351.25 -1.25 -0.35% -0.78% 354.36 51 CBOT soy 958.50 -1.00 -0.10% -0.73% 956.98 44 CBOT rice 12.04 $0.06 +0.54% +1.13% $12.59 35 WTI crude 51.50 -$0.06 -0.12% -1.23% $49.03 64

Currencies

Euro/dlr $1.178 -$0.001 -0.05% +0.30% USD/AUD 0.7840 -0.002 -0.20% -0.10%

Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential

(Reporting by Naveen Thukral; Editing by Subhranshu Sahu)