GRAINS-Soybeans fall again, move further away from $10 level

* Soybeans fall, spotlight on Brazilian weather

* Dry weather seen U.S. corn harvest after slow start

* Wheat drifts up and down

(Recasts with European trade, adds new comment, changes dateline) HAMBURG, Oct 17 (Reuters) - Chicago soybeans eased on Tuesday, falling further away from the $10 a bushel level reached last week on an improving outlook for Brazilian planting and a generally favourable picture for U.S. crops. Corn slid on forecasts of dry weather expected to help the U.S. harvest. Wheat moved in and out of positive territory in trade lacking direction. Most-active November soybeans on the Chicago Board of Trade fell 0.4 percent to $9.86-1/2 a bushel at 1058 GMT. Soybeans were up 2.9 percent last week, rising above the $10 per bushel threshold for the first time in 2-1/2 months, supported by a surprise cut in U.S. harvest yield forecasts from the U.S. Department of Agriculture (USDA). December corn fell 0.2 percent to $3.49-1/2 a bushel and December wheat fell 0.1 percent to $4.36 a bushel. "Soybeans are seeing a continued pullback in selling from the $10 a bushel level we reached after the USDA cut its forecast of U.S. crop yields last week," said Matt Ammermann, commodity risk manager at INTL FCStone. "The $10 level is important psychologically and I think there needs to be a considerable level of fear in the market about crops to sustain it." "The fear is not present today. Market focus is now turning to the South American soybean planting season and we are currently seeing some more crop-friendly weather forecasts in Brazil." The USDA said in its U.S. crop report on Monday that 29 percent of U.S. corn has been harvested as of Sunday, behind market expectations of 31 percent.

Harvesting of the U.S. soybean crop was 49 percent complete, matching analysts' expectations. "The U.S. soybean and corn crop conditions and harvest progress reports late on Monday did not really contain anything to cause great concern," Ammermann said. "Overall condition of the U.S. soybean and corn crops looks all right, and although the corn harvest is lagging behind, I do not regard this as a major worry." For corn, forecasts of warm and dry weather in the Midwest crop belt should allow farmers to pick up the pace of harvesting following a slow start. "When U.S. farmers get reasonable weather, the speed that they can gather their harvests is remarkable," Ammermann said. Wheat is drifting up in a market lacking strong impulse, some background support is coming from steady prices in Black Sea export regions, he said. Grains prices at 1058 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 436.00 -0.50 -0.11% -0.80% 443.65 45 CBOT corn 349.25 -1.25 -0.36% -0.99% 351.96 48 CBOT soy 986.50 -4.50 -0.45% -1.37% 969.43 60 CBOT rice $12.14 $0.01 +0.12% -0.41% $12.34 56 WTI crude $52.12 $0.25 +0.48% +1.30% $50.35 64


Euro/dlr $1.176

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

RSI 14, exponential

(Reporting by Michael Hogan, additional reporting by Naveen Thukral, editing by David Evans)