GRAINS-Wheat rallies after USDA confirms damage from recent dry weather

SYDNEY, April 3 (Reuters) - U.S. wheat futures rose more than 0.5 percent on Tuesday after the U.S. Department of Agriculture said the crop condition has suffered from recent dry weather, threatening output from the world's largest exporter.

FUNDAMENTALS

* The most active wheat futures on the Chicago Board Of Trade were up 0.7 percent at $4.49-1/2 a bushel by 0047 GMT, having closed down 1 percent on Monday.

* The most active soybean futures were up 0.2 percent at $10.19-3/4 a bushel, after closing down 0.9 percent on Monday when prices hit a high of $10.60-1/2 a bushel - the highest since March 9.

* The most active corn futures gained 0.2 percent to $3.88 a bushel, having closed down 0.1 percent in the previous session.

* The USDA said 32 percent of the U.S. winter wheat crop was in good to excellent condition, compared with 51 percent this time last year.

* The USDA on Thursday forecast U.S. plantings of both corn and soybeans below trade expectations, sending futures soaring ahead of the long Easter holiday weekend. The agency also estimated quarterly U.S. stocks of both commodities at historic highs, which the market largely shrugged off.

* Fears of a trade war with China, a top agricultural products buyer, kept markets on edge after Beijing announced higher tariffs on a long list of U.S. goods, including pork and ethanol.

MARKET NEWS

* The dollar fell on Monday, dropping versus the yen for a third straight session, as China imposed extra tariffs on U.S. products, escalating a dispute between two of the world's biggest economies.

* Oil prices inched up on Tuesday as rising Russian output and expectations of a reduction in Saudi Arabian crude prices were offset by a potential slowdown in U.S. production.

* Wall Street shares plunged on Monday as investors fled technology stocks amid resurgent trade war worries, with key indexes trading below their 200-day moving averages and the S&P 500 closing below that pivotal technical level for the first time since Britain's vote to leave the European Union in June 2016.

DATA AHEAD (GMT)

0600 Germany Retail sales Feb 0750 France Markit manufacturing PMI Mar 0755 Germany Markit/BME manufacturing PMI Mar 0800 Euro zone Markit manufacturing PMI final Mar 1345 U.S. ISM-New York index

Grains prices at 0105 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 449.50 3.25 +0.73% -0.33% 473.22 42 CBOT corn 388.00 0.75 +0.19% +0.06% 381.72 72 CBOT soy 1041.25 5.75 +0.56% -0.34% 1044.00 58 CBOT rice 12.31 $0.00 +0.00% -1.08% $12.34 50 WTI crude 63.17 $0.16 +0.25% -2.73% $62.76 46

Currencies

Euro/dlr $1.230 $0.000 +0.02% -0.15% USD/AUD 0.7669 0.001 +0.09% -0.12%

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

(Reporting by Colin Packham; Editing by Subhranshu Sahu)