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GRAINS-Corn recovers from 7-week low, U.S. crop outlook caps gain

* Corn ticks up after dropping to weakest since April 20 * Wheat up after 2 days of decline; market eyes U.S. harvest * Soybeans drop to lowest since May 18 (Adds details, quotes) By Naveen Thukral SINGAPORE, June 5 (Reuters) - Chicago corn ticked higher on Tuesday after dropping to a near seven-week low earlier in the session on pressure from crop-friendly U.S. weather which is boosting expectations of a bumper harvest. Wheat bounced back from two straight sessions of losses, although the market is likely to be weighed down by U.S. harvest pressure. Soybeans slid to their lowest in nearly three weeks. The most-active corn contract on the Chicago Board Of Trade was up 0.3 percent at $3.82 a bushel by 0336 GMT after hitting a low of $3.80 a bushel, the weakest since April 20. Corn closed down 2.7 percent in the previous session on favourable U.S. crop weather and worries about trade disputes. Wheat was up 0.7 percent at $5.08-3/4 a bushel after closing down 3.4 percent in the previous session and soybeans gave up 0.2 percent to $10.00 a bushel, the lowest since May 18. "The corn market has recovered a little bit but it is mainly bargain-buying," said Phin Ziebell, an agribusiness economist at National Australia Bank. "U.S. weather looks good for the crop and any rally in this situation is unlikely." After market hours on Monday, the U.S. Department of Agriculture rated 78 percent of the corn as good to excellent, down from 79 percent a week earlier, but still among the highest U.S. corn ratings for this time of year in records dating to the 1980s. The agency rated 75 percent of the U.S. soybean crop in good to excellent condition, above an average of analyst expectations for 74 percent. The USDA said the U.S. winter wheat harvest was 5 percent complete as of Sunday, lagging the average analyst expectation of 8 percent. Worries about U.S. trade relations with China, the world's top soybean importer, continue to loom over the market. Paraguay is forecast to export more soybeans than neighbouring grains powerhouse Argentina for the first time this year as growers in the smaller country push to increase output and fill the supply gap left by a drought on the Argentine Pampas. Commodity funds were net sellers of Chicago Board of Trade corn, wheat, soybean, soymeal and soyoil futures contracts on Monday, traders said. Trade estimates of net fund selling in corn ranged from 21,000 to 40,000 contracts, in wheat from 7,000 to 20,000 contracts and in soybeans from 6,000 to 20,000 contracts. Grains prices at 0336 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 508.75 3.50 +0.69% -3.33% 512.09 43 CBOT corn 382.00 1.25 +0.33% -3.05% 399.39 27 CBOT soy 1000.00 -1.75 -0.17% -1.82% 1026.78 33 CBOT rice 11.24 $0.02 +0.18% -2.81% $12.45 18 WTI crude 65.11 $0.36 +0.56% -1.06% $69.20 27 Currencies Euro/dlr $1.169 $0.000 +0.03% +0.27% USD/AUD 0.7637 0.007 +0.93% +0.82% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)

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