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GRAINS-Soybeans fall to two-week low as trade war threat escalates

SYDNEY, March 12 (Reuters) - U.S. soybean futures fell on Monday to hit a more-than-two-week low as traders worried about future demand for North American supplies as Chinese officials signalled the oilseed was a likely target for retaliation against tariffs imposed by U.S. President Donald Trump.

FUNDAMENTALS

* The most active soybean futures on the Chicago Board Of Trade were down 0.1 percent to $10.38-3/4 a bushel by 0058 GMT, having earlier hit a low of $10.32 a bushel - the lowest since Feb 21. Soybeans fell 2.3 percent on Friday.

* The most active corn futures were down 0.6 percent to $3.88-1/4 a bushel, having closed down 0.8 percent in the previous session.

* The most active wheat futures were down 0.1 percent to $4.89 a bushel, having closed down 2 percent on Friday.

* Chinese officials have said U.S. soybeans are a prime target for retaliation against tariffs imposed by the Trump administration on steel and aluminium imports, according to the American Soybean Association.

* Soybeans and corn supported as dry weather lingers across Argentina.

* The U.S. Department of Agriculture in a monthly supply and demand report on Thursday cut projected U.S. corn stocks by more than expected on the back of healthy exports and ethanol demand.

* The USDA raised its outlook for global wheat inventory at the end of 2017/18 to a record. High world supplies were countering support from drought in parts of the Plains.

MARKET NEWS

* The dollar was little changed against a basket of currencies on Friday as monthly U.S. job growth data was its strongest in over 1-1/2 years while wage gains slowed more than expected, supporting the view the Federal Reserve would not quicken its pace on raising interest rates.

* Oil prices rose nearly $2 on Friday, rebounding from two days of declines as Wall Street climbed on strong U.S. jobs data, while investors also grew hopeful that a planned meeting between U.S. President Donald Trump and North Korea's Kim Jong Un could ease geopolitical tensions.

DATA AHEAD (GMT)

1400 U.S. Employment trends Feb

Grains prices at 0058 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 489.00 -0.25 -0.05% -2.05% 477.04 57 CBOT corn 388.25 -2.25 -0.58% -1.33% 376.86 61 CBOT soy 1038.75 -0.50 -0.05% -2.37% 1030.99 34 CBOT rice 12.32 -$0.02 -0.12% -0.93% $12.45 46 WTI crude 62.22 $0.18 +0.29% +3.49% $62.31 52

Currencies

Euro/dlr $1.231 $0.000 +0.03% -0.01% USD/AUD 0.7857 0.001 +0.10% +0.87%

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

(Reporting by Colin Packham; Editing by Sunil Nair)