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GRAINS-Wheat falls for 2nd session on improved U.S. weather outlook

* Wheat down 0.4 pct after losing 1.4 pct on Monday
* Corn dips for 2nd day, soybeans lose more ground

(Adds details, quotes)
By Naveen Thukral
SINGAPORE, March 21 (Reuters) - Chicago wheat futures edged
lower on Tuesday, easing for a second session after forecasts
for much-needed rains for the U.S. Plains winter wheat crop.
Corn fell, tracking wheat, while soybeans dipped for a third
session on pressure from record South American supplies.
The Chicago Board of Trade most-active wheat contract
slid 0.4 percent to $4.28-3/4 a bushel by 0242 GMT after
dropping 1.4 percent in the last session.
Corn gave up 0.2 percent to $3.62-3/4 a bushel and
soybeans lost 0.1 percent to $9.99 a bushel.
"The wheat market collapsed last night and today it remains
in a bearish tone," said Kaname Gokon at brokerage Okato Shoji
in Tokyo.
"The weather for U.S. winter crop is expected to improve,
(and) there is more downside for wheat prices."
Forecaster Commodity Weather Group said in a note to clients
that a wetter trend was expected across three-fourths of the
U.S. Plains in the next two weeks, which will benefit the wheat
crop that just emerged from dormancy there.
Meanwhile, concerns about a massive soybean harvest in
Brazil eating into overseas demand for U.S. exports in the
coming weeks is providing headwinds to the soybean market.
Brazil's Abiove association pegged the country's soybean
crop now being harvested at 107.3 million tonnes, up from its
February forecast of 104.6 million tonnes. Brazil's soy exports
were seen at 59.8 million tonnes, 1.1 million tonnes larger than
Abiove's previous outlook.
Paraguay's 2016/17 soybean crop is estimated at more than 10
million tonnes, Agriculture Minister Juan Carlos Baruja told
reporters on Monday, setting expectations for what would be a
record harvest for the world's No. 4 soybean exporter.
Commodity funds were net sellers of CBOT corn, wheat and
soyoil futures contracts on Monday, traders said. They were even
in soybeans and sellers of soymeal.

Grains prices at 0242 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 428.75 -1.50 -0.35% -1.72% 449.03 48
CBOT corn 362.75 -0.75 -0.21% -1.29% 373.03 44
CBOT soy 999.00 -0.50 -0.05% -0.10% 1031.80 35
CBOT rice 9.87 $0.02 +0.15% -0.45% $9.71 73
WTI crude 48.40 $0.18 +0.37% -0.78% $51.83 31
Currencies
Euro/dlr $1.076 $0.002 +0.21% +0.22%
USD/AUD 0.7713 -0.002 -0.21% +0.19%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per
hundredweight
RSI 14, exponential

(Reporting by Naveen Thukral; Editing by Richard Pullin and Tom
Hogue)

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