Wires

GRAINS-Soybean futures retreat from more than two-month high

SYDNEY, Oct 2 (Reuters) - U.S. soybean futures edged lower on Wednesday, retreating from a more than two-month high touched in the previous session, though losses were checked by further Chinese purchases and lower-than-expected estimates for North American supplies.

FUNDAMENTALS

* The most active soybean futures on the Chicago Board Of Trade (CBOT) were down 0.2% at $9.17-1/2 a bushel by 0041 GMT, having firmed 1.5% on Tuesday when prices hit a July 22 high of $9.20 a bushel.

* The most active corn futures were down 0.3% at $3.91-1/2 a bushel, having gained 1.2% in the previous session when prices hit a Aug. 12 high of $3.92-3/4 a bushel.

* The most active wheat futures were down 0.4% at $4.96-3/4 a bushel, having closed up 0.3% on Tuesday.

* The U.S. Department of Agriculture (USDA) grain stocks report on Monday pegged corn and soy inventories below traders' expectations.

* The inventory estimates heightened concerns about supplies and questions over whether the USDA may be overstating the size of the upcoming autumn harvests.

* Traders are uncertain about the crops after historic flooding delayed plantings in the spring and as harvests are off to a slower than normal start.

* Chinese firms purchased up to 600,000 tonnes of U.S. soybeans on Monday as part of a tariff-free quota allotted to the importers to buy up to 2 million tonnes this week, two sources with knowledge of the deals said.

MARKET NEWS

* Worries about a slowing U.S. economy and the possibility of further interest rate cuts in the wake of weak U.S. manufacturing data kept the dollar pinned down on Wednesday, as investors sought safety elsewhere.

* Oil futures sank on Tuesday as weak U.S. data dimmed crude's demand outlook and pressured prices, while reports of a third-quarter decline in output from the world's largest oil producers kept oil from falling further.

* The S&P 500 and Dow suffered their worst tumbles in over a month on Tuesday after data showed U.S. factory activity shrank in September to its weakest in over a decade, ratcheting up fears that the U.S.-China trade war is hobbling the world's largest economy.

Grains prices at 0041 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSICBOT wheat 496.75 -2.00 -0.40% +0.20% 478.84 65CBOT corn 391.50 -1.00 -0.25% +0.90% 369.87 77CBOT soy 917.50 -2.00 -0.22% +1.27% 881.02 70CBOT rice 11.86 -$0.01 -0.08% -1.29% $11.93 43WTI crude 53.94 $0.32 +0.60% -0.24% $56.28 34

Currencies

Euro/dlr $1.094 $0.001 +0.07% +0.37%USD/AUD 0.6709 0.001 +0.10% -0.59%

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

(Reporting by Colin Packham; editing by Uttaresh.V)