GRAINS-Wheat drops more than 1 pct despite U.S. weather woes

SYDNEY, March 6 (Reuters) - U.S. wheat futures fell more than 1 percent on Tuesday, though prices lingered near an eight-month high as adverse weather conditions threaten to crimp production from the world's largest exporter.


* The most active wheat futures on the Chicago Board Of Trade were down 1.3 percent at $5.02-3/4 a bushel, by 0125 GMT, after closing up 1.9 percent on Monday. Wheat hit a high of $5.18-1/2 a bushel last week, the highest since July 2017.

* The most active soybean futures slipped 0.3 percent to $10.74-1/4 a bushel, after closing 0.6 percent higher in the previous session.

* The most active corn futures slid 0.4 percent to $3.85-3/4 a bushel, having ended 0.5 percent higher in the previous session.

* Wheat has drawn recent support amid forecasts for continued dry weather across the U.S. Plains, threatening a crop that has already been damaged by adverse weather.

* U.S. Department of Agriculture will on Thursday issue its latest monthly supply and demand report, in which analysts expect the government to show slightly larger U.S. wheat ending stocks. Analysts also predicted USDA would hike Brazilian soy output and lower soy output in Argentina.

* The deepening drought in the Pampas grain belt has led forecasters to cut estimates for the forthcoming Argentine soybean crop, prompting investors to raise their long position in Chicago futures.


* The dollar edged higher versus the yen on Tuesday, supported by receding fears about a trade war stemming from U.S. President Donald Trump's proposed tariffs on imported steel and aluminium.

* Crude prices rose on Monday along with the U.S. stock market on forecasts for robust oil demand growth and concerns that output from OPEC producers would grow at a much slower pace in coming years.

* U.S. stocks rallied on Monday as fears of a global trade war ebbed with investors betting that U.S. President Donald Trump would back down on his threat to impose hefty tariffs on steel and aluminium imports.

Grains prices at 0125 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 502.75 -6.50 -1.28% +0.55% 470.51 69 CBOT corn 385.75 -1.50 -0.39% +0.13% 373.11 72 CBOT soy 1074.25 -3.25 -0.30% +0.30% 1024.11 84 CBOT rice 12.47 -$0.01 -0.04% +0.00% $12.45 59 WTI crude 62.79 $0.22 +0.35% +2.51% $62.85 56


Euro/dlr $1.235 $0.002 +0.15% +0.30% USD/AUD 0.7781 0.002 +0.22% +0.24%

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)