* Wheat starts new month with more than 1 pct decline
* Fund selling, ample supplies add pressure on prices
(Adds details, quotes) SINGAPORE, Feb 1 (Reuters) - Chicago wheat futures slid for a second session on Thursday as the market started the new month lower with funds selling off positions to cash in on a recent rally and on signs that supplies remain abundant. Soybeans and corn lost ground but the focus remains on a severe drought in parts of Argentina which is expected to curb yields. Commodity funds were net buyers of Chicago Board of Trade (CBOT) corn futures on Wednesday and net sellers of wheat, soybeans, soymeal and soyoil, traders said. "There are plenty of wheat supplies but prices will be influenced by weather as seasonally we are in the weather market for the northern hemisphere crop," said one India-based analyst at an international bank which tracks global agricultural markets. The most-active wheat contract on the Chicago Board Of Trade fell 1.3 percent at $4.46 a bushel by 0259 GMT, adding to Wednesday's decline of 1.2 percent. Soybeans were down 0.5 percent at $9.90-1/2 a bushel, having closed down half a percent on Wednesday and corn lost 0.2 percent to $3.60-3/4 a bushel, having closed unchanged in the previous session. Wheat fell after touching its highest since late September in the previous session amid fears that adverse dry weather across a key U.S. growing region will damage yields. Condition ratings for winter wheat declined in January in several southern U.S. Plains states that have been hit by drought, including top producer Kansas, the U.S. Department of Agriculture said on Monday. Corn and soybean traders are monitoring weather in Argentina as drought has reduced plantings and hurt yield potential for both crops. The country's parched corn and soybean growing areas will remain dry in the days ahead, forecasters said on Wednesday as farmers calculated yield losses caused by a three-month-long drought that was expected to get worse before it gets better.
Yield damage to early-planted beans and corn in the key Pampas farm belt has already been caused by the hot, dry weather with growers hoping that February rains will relieve later-planted fields.
Grains prices at 0259 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 446.00 -5.75 -1.27% -0.72% 429.89 60 CBOT corn 360.75 -0.75 -0.21% +0.56% 352.09 69 CBOT soy 990.50 -5.25 -0.53% -0.10% 972.16 61 CBOT rice 12.45 $0.01 +0.08% +0.12% $12.05 77 WTI crude 64.77 $0.04 +0.06% +0.42% $62.46 57
Euro/dlr $1.242 $0.000 -0.03% +0.16% USD/AUD 0.8042 -0.007 -0.83% +0.17%
Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential
(Reporting by Naveen Thukral; Editing by Christian Schmollinger)