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GRAINS-Wheat falls 1 pct on USDA crop-condition report

SYDNEY, March 7 (Reuters) - U.S. wheat futures fell 1 percent on Wednesday as the market took comfort from a widely watched U.S. government report that showed the condition of crops in key producing regions improved despite recent adverse weather.

FUNDAMENTALS

* The most active wheat futures on the Chicago Board of Trade were down 1 percent at $5.01-3/4 a bushel, by 0148 GMT, after closing down 0.4 percent on Tuesday. Wheat hit a high of $5.18-1/2 a bushel last week, the steepest since July 2017.

* The most active soybean futures slipped 0.4 percent to $10.74 a bushel, after closing 0.3 percent lower in the previous session.

* The most active corn futures slid 0.3 percent to $3.87-1/4 a bushel, having ended 0.3 percent higher in the previous session.

* The USDA in a state crop report late Monday rated 13 percent of the Kansas winter wheat crop in good-to-excellent condition, up from 12 percent in a monthly report released Feb. 26.

* The USDA rated Oklahoma's wheat as 6 percent good-to-excellent, up from 4 percent in a Feb. 26 monthly report.

* USDA on Thursday will release monthly supply and demand outlook for wheat, corn and soybeans. Some analysts expected the agency to show larger U.S. wheat ending stocks due to weak export demand and despite the risk of crop losses.

MARKET NEWS

* The dollar extended its latest retreat in Asia on Wednesday after a key advocate for free trade in the White House announced his resignation, fanning fears President Donald Trump would go ahead with tariffs and risk a trade war.

* Oil prices rose on Tuesday, supported by a weaker dollar but U.S. crude's gains were limited by expectations for a weekly rise in U.S. crude stockpiles.

* U.S. stock futures fell more than 1 percent late Tuesday after the resignation of U.S. President Donald Trump's top economic adviser, Gary Cohn, fueled fears that the administration would follow through with plans to impose steel and aluminum tariffs, possibly triggering a trade war.

DATA AHEAD (GMT)

0745 France Trade data Jan 0800 China Forex reserves Feb 1000 Euro zone Revised GDP Q4 1315 U.S. ADP national employment Feb 1330 U.S. International trade Jan

1900 Federal Reserve Beige Book on economic condition

Grains prices at 0148 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 501.75 -5.25 -1.04% -1.47% 472.88 74 CBOT corn 387.25 -1.00 -0.26% +0.00% 374.14 72 CBOT soy 1070.00 -4.75 -0.44% -0.70% 1026.54 68 CBOT rice 12.48 $0.00 +0.00% +0.12% $12.45 60 WTI crude 62.16 -$0.44 -0.70% -0.66% $62.77 48

Currencies

Euro/dlr $1.241 $0.001 +0.06% +0.61% USD/AUD 0.7795 -0.003 -0.41% +0.40%

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)