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GRAINS-Corn hits 3-month high on LatAm crop concerns, short-covering

SINGAPORE, Dec 4 (Reuters) - Chicago corn climbed to its highest since early September on Monday with concerns that dry weather will hurt crop yields in Argentina underpinning the market. Soybeans rose for a second session to a one-week top while wheat ticked higher, rising for four out of five sessions.

FUNDAMENTALS

* Dry weather across Argentina's farms is supporting corn and soybean prices.

* Parts of Argentina's soybean and corn belt received some beneficial rains last week, but dry weather remains a concern across several provinces.

* Brazil's corn production will drop by almost 17 percent in the 2017/18 crop cycle, consultancy Safras & Mercado said on Friday, reflecting a reduction in estimated planted area and lower prices for the grain.

* Corn output will total 90.52 million tonnes compared with a Safras estimate of 108.87 million tonnes for production in the 2016/17 crop season, the consultancy said.

* Gains in corn and soybeans are likely to be capped by expectations of increase in U.S. production next year.

* U.S. farmers are likely to expand plantings of both corn and soybeans while reducing wheat seedings for the upcoming marketing year, the U.S. Agriculture Department said last week.

* Large speculators trimmed their net short position in Chicago Board of Trade corn futures in the week to Nov. 28, regulatory data released on Friday showed.

* The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and switched to a net long position in soybeans.

MARKET NEWS

* The U.S. dollar bounced to a two-week top on Monday as traders celebrated the passage of a Senate tax bill over the weekend, while stronger U.S. stock futures pointed to a merry start for Asian shares.

DATA AHEAD (GMT)

0930 Euro zone Sentix index Dec 1000 Euro zone Producer prices Oct 1445 U.S. ISM-New York index Nov 1500 U.S. Factory orders Oct

Grains prices at 0112 GMT

Contract Last Change Pct chg MA 30 RSI CBOT wheat 440.00 1.50 +0.34% 440.00 46 CBOT corn 359.50 0.75 +0.21% 359.50 59 CBOT soy 1002.25 8.00 +0.80% 1002.25 68 CBOT rice 12.46 $0.00 +0.00% $12.46 71 WTI crude 58.15 -$0.21 -0.36% $58.15 62

Currencies

Euro/dlr $1.187 $1.187 USD/AUD 0.7592 0.759

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

(Reporting by Naveen Thukral; editing by Richard Pullin)