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GRAINS-Market eases after gains as Americas weather watched

* Corn, wheat ease after multi-month highs on Thursday
* Soybeans lower after one-week high
* Argentine, U.S. droughts stay in focus after USDA report
* CONAB cut to Brazil corn crop outlook adds supply risk

(Updates with European trading, changes byline/dateline)
By Gus Trompiz and Naveen Thukral
PARIS/SINGAPORE, Feb 9 (Reuters) - Chicago corn, wheat and soybeans edged
lower on Friday, consolidating after recent gains as investors turned their
attention back to weather risks in North and South America after a U.S. crop
report a day earlier brought few major surprises.
Wheat was poised for a fourth week of gains, with prices underpinned by
concerns over drought affecting some U.S. wheat belts.
Soybeans and corn are also set to notch up a weekly rise, as dry weather
threatens the yield prospects of both crops, while there was uncertainty over
how much corn Brazil will grow this year.
Broad losses in equity and commodity markets, following a fresh sell-off on
Wall Street on Thursday, also kept U.S. grain futures subdued in overnight
trading.
The Chicago Board Of Trade most-active wheat contract was down 1.0
percent at $4.51-3/4 a bushel, after reaching a six-month high at $4.64-1/2 on
Thursday.
Soybeans were down 0.5 percent at $9.83-1/4 a bushel, after touching a
one-week high a day earlier. Corn was 0.5 percent lower at $3.64 a bushel
after hitting its highest since mid-August on Thursday at $3.67-3/4.
Grain markets were assessing monthly world crop forecasts from the U.S.
Department of Agriculture (USDA), issued on Thursday.
"The USDA's February report came without fireworks and was largely in line
with expectations," Rabobank analysts said.
"Argentina weather will remain a key focus over the coming weeks, as dry
conditions are expected to return."
Argentina's main crop belt is enduring drought and dry, hot conditions are
expected to build next week after some light rain forecast for late this week.
The USDA cut projected Argentine corn and soybean production, while raising
its outlook for the Brazilian soybean crop.
Analysts said the USDA made moderate adjustments for Argentina compared to
other crop forecasters.
Analysts also stressed that USDA left unchanged its forecast for Brazil's
corn output in 2017/18 at 95 million tonnes, well above the 88 million estimated
by Brazilian agency CONAB on Thursday.
Corn futures were supported on Thursday by the USDA's cut to projected U.S.
stocks, linked to an upward revision to exports.
It increased forecast wheat and soybean stocks, however, as its trimmed
export projections.
Wheat remained supported by weather risks, with a winter storm moving
through the U.S. Midwest adding a potential threat, while investors have large
short positions.
"Short investors probably continue to lurk as potential buyers but their
position is probably much smaller by now," said Tobin Gorey, director of
agricultural strategy at Commonwealth Bank of Australia, referring to CBOT
wheat.

Prices at 1134 GMT
Last Change Pct End Ytd Pct
Move 2017 Move
CBOT wheat 451.75 -4.50 -0.99 427.00 5.80
CBOT corn 364.00 -1.75 -0.48 350.75 3.78
CBOT soy 983.25 -4.50 -0.46 961.75 2.24
Paris wheat Mar 159.00 -0.75 -0.47 159.00 0.00
Paris maize Mar 154.25 0.00 0.00 157.75 -2.22
Paris rape May 348.00 -1.75 -0.50 352.75 -1.35
WTI crude oil 60.45 -0.70 -1.14 60.42 0.05
Euro/dlr 1.22 0.00 -0.02
Most active contracts - Wheat, corn and soy US cents/bushel,
Paris futures in euros per tonne

(Reporting by Naveen Thukral in Singapore and Gus Trompiz in Paris; Editing by
Catherine Evans)

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