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GRAINS-Soybeans edge lower despite easing fears of possible trade war

* Soybeans fall further from one-week high hit on Monday

* Wheat falls, crop condition improves

* Corn edges higher

SYDNEY, March 27 (Reuters) - U.S. soybean futures edged lower on Tuesday, retreating further from a one-week high touched in the previous session, despite easing fears of a potential trade war between the world's two largest economies. Wheat fell, lingering near more than a one-month low, while corn edged higher. The most active soybean futures on the Chicago Board Of Trade were down 0.1 percent at $10.24-1/2 a bushel, having closed down 0.3 percent on Monday after prices had earlier hit a high of $10.40-1/4 a bushel - the highest since March 19. Reports suggested that Chinese and U.S. officials were busy negotiating to avert a trade war. While the market had been buoyed on Monday by China's decision to so far not include soybeans for possible tariff increases, analysts said uncertainty may also impact a widely watched U.S. Department of Agriculture (USDA) report this week, pressuring prices. "The market is also focussed on the USDA's Prospective Plantings report. The report will have the first broad surveys of U.S. farmer's planting intentions for summer crops in season 2018," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia. "Farmer's latent worries about what a trade war might do to soybean prices may mean that price signal is not the only consideration. The market is approaching this plantings report with an unusual degree of uncertainty." The most active corn futures were up 0.2 percent to $3.74-3/4 a bushel, having closed down 0.9 percent in the previous session. Rains expected to relieve Argentina's drought-hit soy and corn crops failed to materialize over the weekend, all but ending hope that yields might recover from four months of unrelenting sun with more heat and dryness expected over the days ahead. The most active wheat futures were down 0.2 percent to $4.52-3/4 a bushel , having closed down 1.3 percent on Monday when prices hit a low of $4.46-1/2 a bushel - the lowest since Feb. 22. The U.S. Department of Agriculture (USDA) late on Monday rated 13 percent of top winter wheat producer Kansas in good-to-excellent condition, up from 11 percent a week earlier.

Grains prices at 0131 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 453.50 -0.75 -0.17% -1.47% 476.59 35 CBOT corn 374.75 0.75 +0.20% -0.66% 380.50 38 CBOT soy 1024.50 -1.00 -0.10% -0.36% 1043.51 40 CBOT rice 12.45 -$0.02 -0.12% +0.69% $12.34 62 WTI crude 65.68 $0.13 +0.20% -0.30% $62.35 71

Currencies

Euro/dlr $1.245 $0.000 +0.02% +0.76% USD/AUD 0.7744 0.000 -0.03% +0.62%

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

(Reporting by Colin Packham; Editing by Gopakumar Warrier)