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GRAINS-Soybean prices fall to one-week low ahead of U.S. govt report

SYDNEY, March 8 (Reuters) - U.S. soybean prices edged down on Thursday to mark their lowest in a week, with traders squaring positions ahead of a widely watched report from the U.S. Department of Agriculture.

FUNDAMENTALS

* The most active soybean futures on the Chicago Board of Trade were down 0.2 percent at $10.62-3/4 a bushel by 0156 GMT. They earlier fell to their weakest since March 1 at $10.62-1/4 a bushel, after closing down 0.9 percent on Wednesday.

* The most active corn futures were down 0.3 percent at $3.86 a bushel, having ended the last session down 2 percent.

* The most active wheat futures were unchanged at $4.97-1/4 a bushel, after closing Wednesday down 0.3 percent.

* The USDA is due to issue its latest supply and demand report later in the session.

* The market is focused on estimates for soybean production in Argentina and Brazil.

* The USDA is expected to forecast larger U.S. wheat ending stocks, due in part to weak export demand, and slightly smaller domestic stockpiles of corn, according to analyst polls by Reuters.

* A small amount of rain is forecast across Argentina, which has been plagued by dry weather.

* But the rain could come too late for crops as analysts expect the USDA to cut outlooks for both soy and corn in Argentina - losses that may be partially offset by increases in Brazilian soy output.

MARKET NEWS

* The dollar was little changed on Wednesday against a basket of currencies as traders await details on U.S. President Donald Trump's proposed tariffs on steel and aluminium, which have touched off fears of a global trade war.

* Oil prices tumbled on Wednesday as financial markets slid and after U.S. government data showed an increase in crude inventories and output.

* The S&P 500 ended slightly lower after Wednesday's volatile session as investors struggled to get a read on U.S. trade policy.

DATA/EVENT AHEAD (GMT)

* China Trade data Feb

1245 European Central Bank interest rate announcement followed

by press briefing by ECB President Mario Draghi

1330 U.S. Weekly jobless claims

*No exact timing

Grains prices at 0156 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 497.25 0.00 +0.00% -1.92% 474.43 63 CBOT corn 386.00 -1.25 -0.32% -0.58% 374.88 71 CBOT soy 1062.75 -2.50 -0.23% -1.12% 1028.36 60 CBOT rice 12.49 $0.00 +0.00% +0.12% $12.45 61 WTI crude 61.37 $0.22 +0.36% -1.96% $62.60 41

Currencies

Euro/dlr $1.240 -$0.001 -0.11% -0.03% USD/AUD 0.7823 0.000 +0.00% -0.05%

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

(Reporting by Colin Packham Editing by Joseph Radford)