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GRAINS-Chicago wheat turns higher, corn and soy also edge up
* Dry weather threatens to reduce wheat crop in Ukraine
* Egypt rejects cargo of Russian wheat due to fungus (Adds quotes, updates prices)
By Nigel Hunt
LONDON, May 31 (Reuters) - Chicago wheat futures rebounded from a one-week low on Thursday as the market remained underpinned by crop concerns in the United States, Australia and Ukraine.
Corn and soybean prices were also higher as a weaker dollar helped to support commodities denominated in the U.S. currency.
The most-active wheat contract on the Chicago Board of Trade was up 0.4 percent at $5.24 a bushel at 1035 GMT after dipping to a low of $5.15-1/4, the weakest since May 22.
Dealers noted a mixed outlook for U.S. crops with spring wheat set to benefit from cooler, wetter weather but the forecast less positive in winter wheat regions.
"Warm temperatures will continue through ten days from the U.S. Southern Plains into the Corn Belt, with the main negative impact being on winter wheat given the ongoing Plains drought," Thomson Reuters Weather Research analyst Isaac Hankes said in a daily update issued late on Wednesday.
Hot, dry weather in Australia also remains a concern.
"There are forecasts for improved weather for spring wheat in the U.S. and Canada and that is adding pressure on prices," said Phin Ziebell, agribusiness economist at National Australia Bank.
"But we still have worries for the Australian crop, which is in need of rains."
Dry weather could also curb yields in Ukraine.
Ukraine's 2018 winter wheat harvest is likely to fall to 24 million tonnes from 25.4 million tonnes in 2017 due to extremely dry weather this spring, the head of the state weather forecasting department said on Thursday.
December wheat on Paris-based Euronext rose 0.7 percent to 184.50 euros a tonne.
Egypt, the world's biggest wheat importer, has rejected a cargo of Russian wheat because it contained excessive levels of the common grain fungus ergot, an Agriculture Ministry spokesman said on Thursday.
Chicago soybean and corn prices also rebounded after falling on Tuesday and Wednesday.
Soybeans were up 0.2 percent at $10.25 a bushel and corn rose 0.8 percent to $3.96-1/2 a bushel.
Dealers said the market continued to keep a close watch on trade tensions between the United States and China.
China is the world's biggest soybean importer and the top buyer of U.S. sorghum, a feed grain that competes with corn. (Additional reporting by Naveen Thukral; Editing by Dale Hudson)
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