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GRAINS-Corn eases on U.S. crop condition, but supply woes limit losses

* U.S. corn rated 76% good-to-excellent, above market forecast

* Soybeans up for 2nd session, wheat futures drop after rally (Adds quote in paragraphs 3-4, details on Argentina's soybean sales, sand fund positioning)

By Naveen Thukral

SINGAPORE, June 2 (Reuters) - Chicago corn futures slid on Wednesday, giving up some of previous session's strong gains on pressure from improved U.S. crop conditions, although global supply concerns limited losses.

Soybeans rose for a second session, while wheat slid after the rally on Tuesday.

"Brazil's second corn crop still seems to be shrinking," Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia, said.

"And a drier trend in the U.S., northern Midwest and Northern Plains is a worry if not yet an actual problem. Feed supply is tight so prices are highly sensitive to almost any crop worry."

AgRural, a Brazilian agribusiness consultancy, on Tuesday announced a forecast reduction for the country's second corn crop because of a severe drought, adding that yields are expected to touch a five-year low this season.

The most-active corn contract on the Chicago Board of Trade (CBOT) was down 0.5% at $6.85-1/4 a bushel by 0250 GMT, having gained 4.8% in the previous session.

Soybeans were up 0.2% at $15.51-3/4 a bushel, having firmed 1.2% on Tuesday, and wheat slipped 0.4% to $6.90-3/4 a bushel, having closed 4.5% higher on Tuesday.

The U.S. Department of Agriculture on Tuesday rated 76% of the U.S. corn crop as good-to-excellent in its first condition ratings for the 2021 crop, above the average estimate of 70% in a Reuters analyst poll.

The USDA said U.S. farmers planted 84% of their intended soybean acreage, below the average estimate in the Reuters poll of 87%.

The USDA rated 48% of the winter wheat crop in good-to-excellent condition, matching trade expectations and marking an improvement from 47% the previous week.

Argentine farmers have sold 20 million tonnes of soy from the 2020/21 season, after transactions for 606,000 tonnes were registered over the past week, the Agriculture Ministry said in a report on Tuesday, including data updated through May 26.

Commodity funds were net buyers of CBOT corn, wheat, soybean, soymeal, and soyoil futures contracts on Tuesday, traders said. (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)

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