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GRAINS-Soybeans ease from 7-month high, wheat struggles near 2-week low

* Soybeans tick lower as market takes a breather after rally Wheat under pressure as U.S. wheat struggles to win business

(Adds details, quotes) SINGAPORE, Feb 22 (Reuters) - Chicago soybeans edged lower on Thursday, hovering just below a seven-month high reached on the back of dry weather curbing yields in Argentina, the world's third largest exporter. Wheat ticked higher, although the market remained near last session's two-week low as U.S. cargoes struggle to win business in a highly competitive global market. The most-active soybean contract on the Chicago Board Of Trade had eased by 0.2 percent to $10.32-1/2 a bushel by 0346 GMT after climbing 0.8 percent in the last session. Wheat added 0.1 percent to $4.47-3/4 a bushel, having dropped to its lowest since Feb. 6 at $4.45-1/2 a bushel on Wednesday. Corn was down 0.1 percent at $3.65-1/4 a bushel. Soybeans are drawing support from expectations that dry weather in Argentina will cut production. Argentina's Rosario Exchange slashed its forecast for the country's soy and corn crops by 5 million tonnes or more each on Wednesday due to drought in the world's No. 3 exporter of each.

Argentine farm consultancy Agripac cut its soybean crop forecast by about 18 percent from the start of the season and its corn crop estimate by 12 percent. But analysts said the market had finished building weather premium and abundant world supplies are expected to cap gains. "Argentina's output can go down further if the weather does not improve," said one India-based agricultural commodities analyst at an international bank. "But the country has 14 million tonnes of inventory, it is enough to restrict further gains in prices. Brazil has another huge crop on the way." He said farmers in Brazil and the United States were taking this opportunity of rally in soybean prices and selling their stockpiles which should ease supply concerns. The market is awaiting updated supply-demand outlook from the U.S. Department of Agriculture in its annual forum this week. Analysts polled ahead of the gathering expect U.S. soybean acres this season to exceed corn acres for just the second time ever. Ample global wheat supplies and stiff competition in markets remained headwinds for U.S. wheat. Major importer Egypt bought 120,000 tonnes of Russian wheat in a tender, underscoring the dominance of Black Sea origins on export markets. Commodity funds were net buyers of CBOT soybean, soymeal and soyoil futures contracts on Wednesday and net sellers of corn and wheat futures, traders said.

Grains prices at 0346 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 447.75 0.50 +0.11% -0.33% 442.74 43 CBOT corn 365.25 -0.50 -0.14% -0.07% 359.13 54 CBOT soy 1032.50 -1.75 -0.17% +0.58% 990.79 78 CBOT rice 11.96 $0.00 +0.00% -0.46% $12.21 38 WTI crude 61.04 -$0.64 -1.04% -1.39% $63.15 41

Currencies

Euro/dlr $1.227 -$0.001 -0.08% -0.52% USD/AUD 0.7793 -0.001 -0.13% -1.12%

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

(Reporting by Naveen Thukral; Editing by Subhranshu Sahu)