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GRAINS-Corn up after deep losses, forecasts of U.S. rains cap gains

SINGAPORE, Aug 15 (Reuters) - Chicago corn rose for the first time in four sessions on Thursday as bargain buying lifted prices, although gains were limited by expectations of favourable rains across the U.S. Midwest. Wheat and soybeans edged higher in early Asian trade. FUNDAMENTALS * Forecasts for some rain in key growing areas of the U.S. Midwest in the coming weeks is adding pressure on the corn market and bolstered the bearish production view issued by the U.S. Department of Agriculture on Monday. * The Chicago Board of Trade corn futures dropped to their lowest since mid-May on Wednesday, having lost more than 11% in the last three sessions. * The USDA surprise boost to its corn production forecast continues to hang over the market. * Analysts were expecting a USDA report later on Thursday to show weekly export sales of soybeans between 150,000 tonnes and 700,000 tonnes. A week ago, soybean export sales totalled 419,914 tonnes. * Wheat harvesting is coming to an end in the European Union's largest producing countries but repeated rain in recent weeks is causing concern about quality loss in some areas, experts said on Wednesday. * Harvesting is almost finished in France, Germany and Poland but rain is interrupting work in Britain. * German wheat exporters are seeking access to new markets including China, Mexico and Indonesia, an industry association said, following signals that Saudi Arabia is about to open up to imports from Russia. * Saudi Arabia has been Germany's biggest market for wheat exports in recent years, but German firms face much tougher competition after Saudi state grain buyer SAGO said last Thursday that it will relax quality specifications for wheat imports from its next tender. * Commodity funds were net sellers of CBOT corn, soybean, soymeal and soyoil futures contracts on Wednesday. They were net buyers of wheat, traders said. MARKET NEWS * Global stocks slumped to more than two-month lows in early Asian trade on Thursday, tracking the Wall Street slide as an inverted U.S. bond yield curve sent a flashing warning to investors about rising recession risks. DATA/EVENTS (GMT) 0130 Australia Employment July 0130 Australia Unemployment Rate July 0830 UK Retail Sales MM, YY July 0830 UK Retail Sales Ex-Fuel MM July 1000 EU Reserve Assets Total July 1230 US Initial Jobless Claims Weekly 1230 US Philly Fed Business Index August 1230 US Retail Sales MM July 1315 US Industrial Production MM July Grains prices at 0124 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 475.00 1.25 +0.26% +0.64% 495.81 38 CBOT corn 373.00 2.75 +0.74% -0.93% 422.20 21 CBOT soy 881.25 3.25 +0.37% -0.87% 894.70 47 CBOT rice 11.45 -$0.05 -0.43% -0.04% $11.78 40 WTI crude 54.98 -$0.25 -0.45% -3.71% $56.39 Currencies Euro/dlr $1.114 $0.001 +0.04% -0.23% USD/AUD 0.6756 0.001 +0.13% -0.65% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Naveen Thukral; editing by Uttaresh.V)

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