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GRAINS-Soybeans extend gains on Argentina dry weather woes

SYDNEY, Feb 15 (Reuters) - U.S. soybeans edged higher on Thursday as fears that adverse weather conditions in Argentina will crimp production underpinned gains.

FUNDAMENTALS

* The most active soybean futures on the Chicago Board Of Trade were up 0.2 percent at $10.19 a bushel, as of 0217 GMT, having firmed 0.5 percent on Wednesday.

* The most active corn futures climbed 0.1 percent to $3.67-1/2, having gained 0.1 percent in the previous session.

* The most active wheat futures gained 0.4 percent to $4.57-1/2 a bushel, having closed down 1 percent on Wednesday.

* Argentina could harvest fewer than 50 million tonnes of soybeans in the 2017-18 crop year, a lead analyst at the Rosario Grains Exchange told Reuters on Wednesday, as a prolonged drought looks set to continue harming yields. Farm office FranceAgriMer lowered its forecast of French soft wheat exports outside the EU in 2017/18 for the fourth month in a row, pointing to stiff overseas competition and low prices that have made French farmers reluctant to sell.

MARKET NEWS

* The dollar extended its losses against the yen and hit a fresh 15-month low on Thursday, with market participants bracing for further near-term weakness in the U.S. currency.

* Oil prices on Thursday extended gains from the previous session, pushed up by a weak dollar and by comments from Saudi Arabia that it would rather see an undersupplied market than end a deal with OPEC and Russia to withhold production.

* Wall Street surged on Wednesday as investors shrugged off stronger-than-expected inflation data and snapped up shares of Facebook, Amazon.com and Apple.

DATA AHEAD (In GMT)

1000 Euro zone Eurostat trade Dec 1330 U.S. Weekly jobless claims 1330 U.S. Philly Fed business index Feb 1330 U.S. New York Fed manufacturing Feb 1415 U.S. Industrial production Jan 1500 U.S. NAHB housing market index Feb

Grains prices at 0209 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 457.50 1.75 +0.38% -0.71% 440.03 56 CBOT corn 367.50 0.25 +0.07% +0.20% 356.93 66 CBOT soy 1019.00 1.75 +0.17% +0.72% 982.43 74 CBOT rice 12.18 -$0.07 -0.57% -0.85% $12.20 36 WTI crude 61.08 $0.48 +0.79% +3.19% $63.20 43

Currencies

Euro/dlr $1.245 $0.001 +0.05% +0.84% USD/AUD 0.7927 0.000 +0.05% +0.87%

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

(Reporting by Colin Packham; Editing by Sherry Jacob-Phillips)