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GRAINS-Corn edges higher, weather outlook and trade war cap gains

SYDNEY, Aug 7 (Reuters) - U.S. corn futures edged higher on Wednesday, though gains were checked by forecast of ideal weather across a key North American growing region and worries about the global economy stoked by an escalating trade war between Washington and Beijing. FUNDAMENTALS * The most active corn futures on the Chicago Board Of Trade were up 0.2% at $4.13-1/2 a bushel, having closed down 0.5% in the previous session. * The most active soybean futures were little changed at $8.66-1/4 a bushel, having closed down 0.3% on Tuesday. * The most active wheat futures were up 0.4% at $4.85-3/4 a bushel, having closed down 2% on Tuesday. * Fears of a prolonged U.S.-China trade war hung over grain markets a day after the U.S. Treasury Department branded China a currency manipulator. * U.S. President Donald Trump on Tuesday dismissed concerns over a protracted trade war with China, despite a warning by Beijing of financial market chaos. * More rain is expected in the 11- to 15-day forecast, with near-normal temperatures over the next two weeks, Commodity Weather Group said on Tuesday. * The U.S. Department of Agriculture pegged 57% of U.S. corn crop in good-to-excellent condition, down 1 percentage point from a week earlier, while soybean conditions were unchanged at 54%. Conditions for both are below average following an overly wet spring planting season. MARKET NEWS * The dollar fell against the yen as Japanese stocks opened lower on Wednesday in a sign markets remain nervous about U.S.-China trade frictions following major foreign exchange volatility in the previous session. * Oil fell on Wednesday as the intensifying Sino-U.S. trade dispute stoked worries over demand, although a drop in U.S. crude inventories offered some support to prices. * U.S. stocks jumped more than 1% on Tuesday, bouncing back from a sharp sell-off the previous day as China stepped in to stabilize the yuan, easing concerns that currencies would be the next weapon in the U.S.-China trade war. Grains prices at 0142 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 485.75 1.75 +0.36% -1.77% 504.36 41 CBOT corn 413.50 1.00 +0.24% -0.30% 430.98 41 CBOT soy 866.25 0.50 +0.06% -0.29% 900.17 27 CBOT rice 11.34 $0.00 +0.00% -3.12% $11.77 25 WTI crude 53.71 $0.08 +0.15% -1.79% $57.16 36 Currencies Euro/dlr $1.121 $0.002 +0.13% +0.10% USD/AUD 0.6778 0.002 +0.27% +0.33% 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)

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