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GRAINS-Soybeans up for third session on Argentina dryness; wheat eases

SINGAPORE, Dec 5 (Reuters) - Chicago soybean futures rose for a third straight session on Tuesday with dry weather in Argentina and strong U.S. demand buoying the market. Wheat slid for a second day as U.S. exporters face stiff competition in amply supplied global market.

FUNDAMENTALS

* Hot and dry weather in parts of Argentina's oilseed-producing areas is expected to reduce yields.

* Rainfall over the weekend was limited in Argentina, the top global soymeal and soyoil exporter, and showers were expected to be limited this week, MDA Weather Services said in a note to clients.

* A report from the U.S. Department of Agriculture (USDA) showed U.S. soybean crush in October at about 176 million bushels was above analysts' estimates, reflecting strong domestic demand.

* Still, Brazil's 2017/18 soybean crop could reach 107.6 million tonnes, broker and analyst INTL FCStone said on Monday, raising its forecast from 106.1 million tonnes previously as favourable weather is seen boosting agricultural yields.

* The wheat market is being weighed down by record global supplies.

* Russian wheat export prices were broadly stable last week amid high grain stocks despite strong export demand, analysts said on Monday.

* A decline in Australia's wheat production could still support prices.

* Australia's 2017/18 wheat production is expected to decline further, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) said on Tuesday, after recent storms damaged the crop, and following a severe drought earlier in the season that reduced yields.

* The world's fourth-largest wheat exporter is forecast to produce 20.3 million tonnes of wheat this year, the agency said, down more than 6 percent from its September forecast of 21.64 million tonnes and 42 percent below last year's record crop of more than 35 million tonnes.

MARKET NEWS

* Asian shares were subdued on Tuesday as investors' rotation out of technology shares took the toll on some of the region's tech heavyweights although hopes of a major tax cut in the United States underpinned risk sentiment.

DATA AHEAD (GMT)

0145 China Caixin services PMI Nov 0850 France Markit services PMI Nov 0855 Germany Markit services PMI Nov 0900 Euro zone Markit services PMI final Nov 1000 Euro zone Retail sales Oct 1330 U.S. International trade Oct 1500 U.S. ISM non-manufacturing PMI Nov

Grains prices at 0128 GMT

Contract Last Change Pct chg MA 30 RSI CBOT wheat 434.50 -0.75 -0.17% 434.50 38 CBOT corn 353.50 0.00 +0.00% 353.50 43 CBOT soy 1000.00 1.50 +0.15% 1000.00 66 CBOT rice 12.22 $0.04 +0.29% $12.22 51 WTI crude 57.62 $0.15 +0.26% $57.62 57

Currencies

Euro/dlr $1.187 $1.187 USD/AUD 0.7635 0.764

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

(Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)