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GRAINS-Soybeans face pressure from U.S.-China trade war, weather

Naveen Thukral

* Soybeans fall on escalating Washington-Beijing trade war

* Near-perfect weather across U.S. Midwest weighs on prices

(Adds details, quote) SINGAPORE, Aug 5 (Reuters) - Chicago soybean futures lost ground on Monday, falling for four out of five sessions, as an escalating trade war between Washington and Beijing caused headwinds to the market. Wheat dropped, giving up some of last session's strong gains while corn lost ground. There was additional pressure on soybean and corn markets stemming from benign weather across much of the U.S. Midwest growing region. The most-active soybean contract on the Chicago Board of Trade was down 0.4% at $8.65 a bushel by 0304 GMT after finishing last week down more than 3%. Wheat fell 1.6% to $4.83 a bushel, having closed up 3.2% on Friday and corn was down 1.2% at $4.04-3/4 a bushel, having gained 1.7% in the previous session. "U.S.-China trade war, but also picture perfect weather in the U.S. have traders thinking that yields may make up for any lower acres," said Ole Houe, director of advisory services at brokerage IKON Commodities. "And we have the USDA report out next week which have traders just squaring off positions and heading to the sidelines. There is too much uncertainty and no one really knows how the USDA will deal with the loss of planted acres." China's yuan skidded against the U.S. dollar on Monday, weakening beyond the key 7-per-dollar level for the first time in more than a decade, as pressure mounted on the world's second-biggest economy from an escalating trade row.

U.S. President Donald Trump last week said he would impose an additional 10% tariff on $300 billion worth of Chinese imports starting Sept. 1, citing insufficient progress in trade talks between the world's two largest economies. The U.S. corn crop may have gotten its latest-ever start this spring, but speculators' bullish bets have lost steam in recent weeks as the weather has not been outwardly threatening for crop development. Large speculators cut their net long position in CBOT corn futures in the week to July 30, regulatory data released on Friday showed. The Commodity Futures Trading Commission's weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and increased their net short position in soybeans.

Grains prices at 0304 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSICBOT wheat 483.00 -7.75 -1.58% +1.52% 507.73 40CBOT corn 404.75 -4.75 -1.16% +0.56% 433.45 28CBOT soy 865.00 -3.50 -0.40% -0.03% 904.26 25CBOT rice 11.65 -$0.06 -0.51% -2.55% $11.79 34WTI crude 55.18 -$0.48 -0.86% +2.28% $57.46

Currencies

Euro/dlr $1.113 $0.002 +0.16% +0.38%USD/AUD 0.6776 -0.002 -0.34% -0.34%

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

(Reporting by Naveen Thukral; Editing by Shounak Dasgupta)