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GRAINS-Wheat prices firm after steep losses, soybeans also rise

* Wheat rises after sharp falls on Monday

* Trading cautious as rain offers only modest respite

* USDA rates 11 pct of Kansas winter wheat good to excellent

(Recasts with European trade, adds new comment, changes dateline) HAMBURG, March 20 (Reuters) - Chicago wheat prices recovered some ground on Tuesday, but trading was cautious after the previous session saw sharp falls as rain on the parched U.S. Plains offered respite for the wheat crop. Soybeans and corn were supported by bargain-buying after Monday's losses. Chicago Board of Trade most-active May wheat was up 0.7 percent at $4.54-1/4 a bushel at 1110 GMT. Chicago wheat fell 3.6 percent on Monday. Kansas City hard red winter wheat futures climbed 1 percent on Tuesday after falling more than 5 percent on Monday. It looks like yesterday's price reaction may have been a little too extreme, especially the very steep fall in Kansas City hard wheat, said Matt Ammermann, commodity risk manager with INTL FCStone. A winter storm brought beneficial rain and snow on Monday to portions of the southern U.S. Plains. The region's hard red winter wheat crop has endured months of drought. "But a few days of rain do not mean that U.S. wheat plants will be good for the rest of the season, so there is a more of a cautious feel in the market today, Ammermann said. May soybeans rose 0.2 percent to $10.25-1/4 a bushel, having fallen 2.6 percent a day earlier on expectations of more rain in drought-hit Argentine soybean regions. May corn was unchanged at $3.75 a bushel, having dropped 2 percent on Monday. After the market closed on Monday, the U.S. Department of Agriculture (USDA) rated 11 percent of the winter wheat in top U.S. production state Kansas in good-to-excellent condition, down from 12 percent a week earlier. Wheat ratings also declined in Texas. The U.S. crop conditions report from the USDA were not good but this weeks report does not yet reflect the impact of the rain in the U.S. Plains over the weekend and it is possible that crop coming crop ratings will improve, Ammermann said. Expectations of more rain in Argentina on drought-damaged soybean crops had weaken soy markets on Monday. Soybeans are also seeing a limited bounce after Mondays falls, Ammermann said. It has to be faced that Argentine soybean crop yields may not be able to fully recover from dryness stress even if there is a sharp increase in rainfall." Grains prices at 1110 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 454.50 3.75 +0.83% -2.83% 478.81 30 CBOT corn 375.50 0.50 +0.13% -1.89% 380.00 38 CBOT soy 1025.50 3.00 +0.29% -2.29% 1038.76 42 CBOT rice $12.30 $0.01 +0.08% -1.32% $12.38 50 WTI crude $62.76 $0.70 +1.13% +0.67% $61.61 61

Currencies

Euro/dlr $1.231

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

(Reporting by Michael Hogan, additional reporting by Naveen Thukral, editing by)