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GRAINS-Soybeans edge higher as dry weather lingers in Argentina

SYDNEY, Dec 27 (Reuters) - U.S. soybean futures edged higher on Wednesday to linger near a two-week high as concerns over dry weather in parts of Argentina supported prices, although gains were capped by ample global supplies.

FUNDAMENTALS

* The most active soybean futures on the Chicago Board Of were up 0.2 percent at $9.61-1/4 a bushel by 0137 GMT after jumping 2.2 percent on Tuesday when prices hit a high of $9.74 a bushel - the highest since Dec. 14.

* The most active corn futures eased 0.2 percent to $3.52 a bushel, having gained 0.2 percent in the previous session when prices hit a high of $3.53-1/4 a bushel - the highest since Dec. 8.

* The most active wheat futures were down 0.1 percent at $4.21-3/4 a bushel, having closed down 0.6 percent on Tuesday.

* Soybeans drew support as a dry weather pattern lingered in Argentina, reducing yield potential in the No. 3 global soy producer after the United States and Brazil.

* Speculative investors, including hedge funds, expanded net short positions in soybeans and corn and trimmed their net shorts in wheat in the latest reporting week, Commodity Futures Trading Commission data showed on Friday.

* The U.S. Department of Agriculture said 1.3 million tonnes of U.S. soybeans, 609,281 tonnes of corn and 493,550 tonnes of wheat were inspected for export last week, all relatively near analysts' expectations.

MARKET NEWS

* The dollar was little changed against major currencies on Tuesday as traders brushed off encouraging Japanese inflation data and Bank of Japan minutes that signaled policy-makers favored sticking to a loose monetary policy.

* Oil prices surged to 2-1/2-year highs and U.S. crude touched $60 a barrel in light trading volume on Tuesday, boosted by news of an explosion on a Libyan crude pipeline as well as voluntary OPEC-led supply cuts.

* U.S. stocks declined on Tuesday as Apple and shares of its parts suppliers weakened on a report of soft iPhone X demand, which pulled technology shares lower.

DATA (GMT)

1500 U.S. Pending home sales Nov

Grains prices at 0137 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 421.75 -0.50 -0.12% -0.71% 428.94 65 CBOT corn 352.00 -0.75 -0.21% +0.00% 352.43 75 CBOT soy 961.25 2.00 +0.21% +1.24% 979.73 43 CBOT rice 11.80 $0.00 +0.00% -1.67% $12.08 41 WTI crude 59.68 -$0.29 -0.48% +2.07% $57.40 74

Currencies

Euro/dlr $1.186 $0.000 +0.01% -0.08% USD/AUD 0.7731 0.000 +0.05% +0.21%

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

(Reporting by Colin Packham; editing by Richard Pullin)