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GRAINS-Soybean prices fall 1 percent as U.S.-China trade war escalates

SYDNEY, July 11 (Reuters) - U.S. soybean prices fell 1 percent on Wednesday as the U.S.-China trade war escalated with the planned introduction of fresh tariffs by Washington. FUNDAMENTALS * The most active soybean futures on the Chicago Board of Trade were down 1 percent at $8.63-1/4 a bushel by 0036 GMT, having closed little changed in the previous session. * The most active corn futures were down 0.7 percent at $3.58-1/4 a bushel, after ending the last session down 1.7 percent. * The most active wheat futures dropped 0.6 to $4.89 a bushel, near their session-low of $4.86-1/4 a bushel. Wheat closed down 3.1 percent on Tuesday. * The Trump administration raised the stakes in its trade war with China on Tuesday, saying it would slap 10 percent tariffs on an extra $200 billion worth of Chinese imports. * The U.S. Department of Agriculture lowered its crop condition ratings for corn and soybeans only slightly in the latest week. Ratings for both crops remain near historical highs. [nEMNI740T7 * Cooler, wetter weather is expected in the six-to-10-day outlook. Much of the Midwest corn crop will be pollinating in the coming weeks, a period when stressful weather can limit yield potential. * Spring wheat ratings in the USDA's weekly crop conditions report were above trade expectations, fuelling expectations that the agency may boost its U.S. wheat production forecast in a monthly report later this week. MARKET NEWS * The euro got off to an unusually quiet start in Asia on Monday, having posted its worst weekly performance in three months, as investors await more developments and ratings downgrades from Europe. * Oil edged lower in volatile trading on Friday, posting a second consecutive weekly loss as caution about Europe's debt crisis and year-end positioning continued to spark selling into rallies. * A rally in U.S. stocks fizzled, leaving major indexes with modest gains on Friday, as Wall Street was torn between hope that U.S. economic data signals better times ahead and fear Europe's debt crisis will engulf world economies. Grains prices at 0036 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 489.00 -3.00 -0.61% -3.74% 511.25 45 CBOT corn 358.25 -2.50 -0.69% -2.38% 383.23 34 CBOT soy 863.25 -8.25 -0.95% -1.00% 935.76 37 CBOT rice 11.82 -$0.07 -0.59% -2.39% $11.72 42 WTI crude 73.84 -$0.27 -0.36% -0.01% $68.86 67 Currencies Euro/dlr $1.173 -$0.001 -0.10% -0.16% USD/AUD 0.7422 -0.004 -0.48% -0.59% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Colin Packham Editing by Joseph Radford)

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