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GRAINS-Corn falls from 7-month high, set to finish the week up 2 pct

SYDNEY, March 9 (Reuters) - U.S. corn futures edged lower on Friday, retreating from a more than seven-month high, but the grain was set to finish the week up nearly 2 percent after a widely watched crop report said end of season supplies would be lower than expected.

FUNDAMENTALS

* The most active corn futures on the Chicago Board Of Trade were up nearly 2 percent for the week, extending two-week gains to more than 7 percent.

* Corn hit a high of $3.93-3/4 a bushel on Thursday, the highest since July 2017.

* The most active soybean futures were down nearly 1 percent for the week, the first weekly slide in four weeks.

* The most active wheat futures were down 1 percent for the week, the first fall in two months.

* U.S. corn supplies will be smaller than expected due to strong export demand and rising ethanol production, the U.S. Agriculture Department said on Thursday.

* The USDA in its monthly supply and demand outlook cut the forecast for Argentina corn and soy production but increased its estimate for soy production in Brazil, the top global soy producer and exporter.

* USDA weekly data showed U.S. corn exports last week at 1.9 million tonnes and soybean sales of 2.7 million tonnes - both above the range of analyst expectations. Weekly sales of 428,400 tonnes of U.S. wheat were within the range of estimates.

MARKET NEWS

* The euro fell on Thursday as European Central Bank President Mario Draghi, while acknowledging faster growth in Europe, said regional inflation remained subdued and rising protectionism is a risk.

* Crude oil futures rose on Friday as Asian stock markets gained on news that North Korean leader Kim Jong Un will meet with U.S. President Donald Trump.

* The three major U.S. stock indexes closed higher on Thursday after President Donald Trump appeared to soften his stance on trade tariffs, easing trade war fears that had the market on edge for a week.

DATA/EVENT AHEAD (GMT)

0130 China Consumer prices Feb 0130 China Producer prices Feb

0630 Bank of Japan Governor Haruhiko Kuroda speaks to reporters at the end of the central bank policy meetings

0700 Germany Industrial output Jan 0700 Germany Trade data Jan 0745 France Industrial output Jan 1330 U.S. Nonfarm payrolls Feb 1330 U.S. Unemployment rate Feb 1330 Euro zone Employment Q1 1500 U.S. Wholesale sales Jan

Grains prices at 0149 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 495.00 -4.25 -0.85% -0.45% 476.08 64 CBOT corn 392.75 -0.75 -0.19% +1.42% 376.13 82 CBOT soy 1062.75 -1.25 -0.12% -0.23% 1030.38 61 CBOT rice 12.45 $0.02 +0.12% -0.32% $12.46 54 WTI crude 60.40 $0.28 +0.47% -1.23% $62.38 35

Currencies

Euro/dlr $1.230 -$0.001 -0.11% -0.93% USD/AUD 0.7780 -0.001 -0.12% -0.55%

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

(Reporting by Colin Packham; editing by Richard Pullin)