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Chicago grain prices ease after rally as USDA report looms

By Gus Trompiz and Naveen Thukral

PARIS/SINGAPORE, Aug 12 (Reuters) - Chicago corn, wheat, and soybean futures edged down on Friday as the run-up to U.S. government crop forecasts encouraged the market to consolidate after gains this week, fueled by weather risks and a falling dollar. A bounce in the dollar, after a slide triggered by lower-than-expected U.S. inflation in July, and news of a first wheat shipment via a maritime corridor for Ukrainian exports also curbed prices.

The most-active wheat contract of the Chicago Board of Trade (CBOT) was down 1.5% at $7.99 a bushel by 1139 GMT, after climbing to its highest since July 29 in the previous session. CBOT corn ticked down 0.3% to $6.25-3/4 a bushel after earlier in the session touching its highest since July 29. Soybeans gave up 0.6% to $14.39-1/2 a bushel after reaching their highest since Aug. 1 earlier on Friday.

Parts of the U.S. Midwest received rain in recent days, but heat in the western regions of the farm belt is expected to continue to hurt crops, adding market interest in the U.S. Department of Agriculture's (USDA) monthly World Agricultural Supply and Demand Estimates report, due at 1600 GMT. The government is expected to trim its outlook for U.S. corn production, according to a Reuters survey of analysts.

"The weather forecast remains a matter of concern and is being followed with great interest amid the current dry and hot conditions impacting yields," consultancy Agritel said.

Drought affecting Europe has also supported grain markets. Consultancy Strategie Grains on Thursday cut its European Union corn harvest by 10 million tonnes to a 15-year low, while in France weekly crop data on Friday showed the lowest rating for corn in at least a decade.

However, rains seen in recent weeks in Argentina allowed producers to finish wheat planting and recharged moisture levels, the Buenos Aires grains exchange said on Thursday. Two more ships left Ukraine's Black Sea ports on Friday, including one carrying the first Ukrainian wheat to be exported under a U.N.-brokered deal, Turkey's defense ministry said.

Prices at 1139 GMT Last Change Pct End 2021 Ytd Pct Move Move CBOT wheat 799.00 -11.75 -1.45 770.75 3.67 CBOT corn 625.75 -2.00 -0.32 593.25 5.48 CBOT soy 1439.50 -9.00 -0.62 1339.25 7.49 Paris wheat 336.50 -1.50 -0.44 276.75 21.59 Paris maize 334.25 -0.50 -0.15 226.00 47.90 Paris rape 655.50 -4.50 -0.68 754.00 -13.06 WTI crude oil 92.94 -1.40 -1.48 75.21 23.57 Euro/dlr 1.03 0.00 -0.30 1.1368 -9.52 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne.

(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Sherry Jacob-Phillips and Shailesh Kuber)

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