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GRAINS-Corn edges higher; brighter weather, trade war limit upside

Colin Packham

* U.S. weather outlook to aid corn development

* Soybeans firm despite fears of extended weak Chinese demand

* Wheat edges higher despite ample global supplies

SYDNEY, Aug 7 (Reuters) - U.S. corn futures edged higher on Wednesday, though concerns forecasts for crop-friendly weather and fears of a protracted U.S.-China trade war limited gains. Soybeans firmed, despite fears of prolonged weak Chinese demand for U.S. supplies, while wheat also shrugged off ample global supplies to edge higher. The most active corn futures on the Chicago Board Of Trade were up 0.2% at $4.13-1/2 a bushel, having closed down 0.5% in the previous session. Analysts said the weather outlook was weighing on market sentiment. "Some U.S. corn regions are returning to a drier weather pattern over the next week or so," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia. The weather will allow fields to dry after recent heavy rains, analysts said, before expected rains arrive afterwards. More rain is expected in the 11- to 15-day forecast, with near-normal temperatures over the next two weeks, Commodity Weather Group said on Tuesday. Fears over the outlook for global economy also dragged despite the efforts of U.S. President Donald Trump to soothe market nerves. Trump dismissed concerns over a protracted trade war with China, despite a warning by Beijing of financial market chaos.

The U.S. Department of Agriculture pegged 57% of U.S. corn crop in good-to-excellent condition, down 1 percentage point from a week earlier. The most active soybean futures were up 0.2% at $8.67-1/2 a bushel, having closed down 0.3% on Tuesday. The USDA left its soybean conditions unchanged at 54%. The most active wheat futures were up 0.3% at $4.85-1/2 a bushel, having closed down 2% on Tuesday. Abundant global supplies of wheat remained an obstacle for U.S. export sales prospects. A firmer dollar can make U.S. wheat even less attractive to buyers holding other currencies.

Grains prices at 0343 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSICBOT wheat 485.50 1.50 +0.31% -1.82% 504.35 41CBOT corn 413.50 1.00 +0.24% -0.30% 430.98 41CBOT soy 867.50 1.75 +0.20% -0.14% 900.21 27CBOT rice 11.34 $0.00 +0.00% -3.12% $11.77 25WTI crude 53.56 -$0.07 -0.13% -2.07% $57.16 35

Currencies

Euro/dlr $1.121 $0.001 +0.10% +0.06%USD/AUD 0.6699 -0.006 -0.90% -0.84%

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

(Reporting by Colin Packham; editing by Gopakumar Warrier)