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Corn resumes rally as U.S. crop tour results awaited

By Gus Trompiz and Naveen Thukral

PARIS/SINGAPORE, Aug 26 (Reuters) - Chicago corn futures rose on Friday, resuming a rally after a technical setback in the previous session, as the market awaited final results from a major U.S. Midwest field tour to gauge the impact on crops of hot, dry weather. Soybeans were firm as investors also weighed mixed indications on Midwest growing conditions. Wheat edged higher, with an easing in the dollar lending some support.

The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.9% at $6.56 a bushel by 1128 GMT. It remained below a near two-month high struck on Wednesday but was on course for a 5% weekly gain. The corn market has been supported by some disappointing yield readings in the annual Pro Farmer Midwest Crop Tour this week, raising concern about worse damage than anticipated during a hot, dry summer.

"The crop monitoring tour ... does not lead us to expect much in the way of good news for this year's U.S. crop," Commerzbank analysts said of corn. "The risk of tightening supply should lend support to U.S. prices."

The market is watching for an end-of-tour corn yield projection due to be published on Friday. Iowa's corn yield prospects are on par with the three-year average, while soybean pod counts are above the three-year average, tour scouts found on Thursday. CBOT soybeans were up 0.8% at $14.43 a bushel, while CBOT wheat edged down 0.7% to $7.94-3/4 a bushel.

Drought and a record heatwave in China have also lent support to grain and oilseed prices this week, raising expectations of increased Chinese import demand. India's government on Thursday approved a policy to restrict wheat flour exports to calm local prices. However, wheat markets were being curbed by signs of renewed competition from the Black Sea region. Loading of Ukrainian grain is continuing under a wartime agreement, while Egypt, one of the world's largest wheat importers, booked 240,000 tonnes of Russian wheat this week.

Prices at 1128 GMT Last Change Pct End Ytd Pct Move 2021 Move CBOT wheat 794.75 5.75 0.73 770.75 3.11 CBOT corn 656.00 6.00 0.92 593.25 10.58 CBOT soy 1443.00 11.75 0.82 1339.25 7.75 Paris wheat 327.00 0.00 0.00 276.75 18.16 Paris maize 314.75 1.50 0.48 226.00 39.27 Paris rape 626.75 3.00 0.48 754.00 -16.88 WTI crude oil 93.82 1.30 1.41 75.21 24.74 Euro/dlr 1.00 0.00 0.30 1.1368 -12.00 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, Subhranshu Sahu and David Evans)

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