GRAINS-Wheat drops for 2nd day as US weather improves; soybean prices rise

* Chicago wheat futures fall 0.7 pct, down for 2nd day

* Rains improve crop condition in drought-hit U.S. Plains

* Soybeans tick higher after Friday's losses, corn down

(Adds comment, detail) SINGAPORE, May 7 (Reuters) - Chicago wheat futures slid 0.7 percent on Monday, falling for a second session as an improving weather outlook for the U.S. winter crop weighed on prices. U.S. soybeans ticked higher, but gains were capped by a lack of demand from top importer China amid a trade dispute between the two nations. The Chicago Board of Trade most-active wheat contract has dropped 0.7 percent to $5.22-3/4 a bushel by 0313 GMT, adding to Friday's 2.2-percent decline. Soybeans climbed 0.2 percent to $10.38-1/2 a bushel, while corn slid 0.1 percent to $4.05-3/4 a bushel. "It is a weather-driven market, prices are coming under pressure as there have been rains in some parts of the U.S. Plains and there are forecasts of more rains, but it is not a complete reversal of trend," said an India-based commodities analyst. Recent rains have eased concerns over dryness hurting the Hard Red Winter wheat crop in the U.S. southern Plains. However, scouts on an industry tour on Thursday projected that drought-hit Kansas, the top U.S. wheat-growing state, may produce its smallest crop since 1989. Forecasts of bumper production in the Black Sea region are also pressuring wheat prices. For soybeans, there is disappointment that trade talks between Washington and Beijing did not move closer to a deal to resolve the mounting dispute that has crimped U.S. crop sales to China. The Trump administration has drawn a hard line in trade talks with China, demanding a $200 billion cut in the Chinese trade surplus with the United States, sharply lower tariffs and advanced technology subsidies. U.S. farmers were hoping for a quick resolution to the conflict after China last month threatened tariffs against a range of U.S. goods, including a 25-percent duty on soybeans. U.S. soybean sales to China over the last four weeks are down 10 percent from a year ago, according to U.S. trade figures. This is a blow to farm country, which helped push President Donald Trump into office in the 2016 election. Large speculators raised their net long position in CBOT corn futures in the week to May 1, regulatory data released on Friday showed. The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and raised their net long position in soybeans.

Grains prices at 0313 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 522.75 -3.50 -0.67% -0.76% 489.23 68 CBOT corn 405.75 -0.50 -0.12% +0.19% 394.85 66 CBOT soy 1038.50 1.75 +0.17% -0.43% 1047.10 42 CBOT rice 12.96 $0.03 +0.19% -0.58% $12.99 38 WTI crude 70.36 $0.64 +0.92% +3.58% $66.43 72


Euro/dlr $1.197 -$0.001 -0.11% +0.20% USD/AUD 0.7539 0.001 +0.13% +0.60%

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

(Reporting by Naveen Thukral Editing by Joseph Radford)