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GRAINS-Soybeans, corn drop for second session on demand concerns, U.S. weather

* Concerns over Chinese economic growth weigh on soybeans, corn

* Forecasts of much-needed rains in the U.S. grain belt

* Chicago wheat futures rise after two sessions of decline (Adds quote in paragraph 3-4, updates prices)

By Naveen Thukral

SINGAPORE, Aug 16 (Reuters) - Chicago soybean and corn futures lost more ground on Tuesday, with expectations of crop-friendly U.S. weather conditions and declining demand in top importer China weighing on the market.

Wheat ticked higher after two sessions of losses.

"Relief from dryness is expected from South Dakota through southwestern Iowa to parts of Missouri, southwestern Illinois and eventually into the northern Delta," Terry Reilly, senior analyst with Futures International in Chicago, wrote in a report.

"Additional moisture will be needed, but cooler weather to follow the rain will help conserve the moisture and support better crop development."

The most-active soybean contract on the Chicago Board of Trade (CBOT) lost 0.7% to $14.02-1/4 a bushel, as of 0309 GMT.

Corn gave up 0.3% to $6.26-1/4 a bushel, while wheat added 0.8% to $8.07-1/2 a bushel.

The People's Bank of China cut key interest rates on weaker-than-expected economic data from the world's second-largest economy, raising concerns of a global recession.

A contraction of China's economy, by far the largest buyer of U.S. soybeans, could curb demand for U.S. commodities.

U.S. weather forecasts for rain in the coming weeks could aid parched soybean crops, adding pressure to markets.

U.S. exporters prepared 744,571 tonnes of soybeans for inspection during the week ended Aug. 11, down 14.55% from the week prior, according to the U.S. Department of Agriculture.

Corn export inspections were down 3.1% and wheat exports fell 41.29%, the USDA said.

Hot and dry weather conditions in the past weeks have threatened U.S. production prospects.

The U.S. Department of Agriculture (USDA) rated 57% of the national corn crop in good-to-excellent condition in its weekly progress report, down 1 percentage point from the previous week but just above analyst estimates.

In a report released after the market closed on Monday, the agency rated 58% of the soybean crop as good-to-excellent, down from 59% the previous week and matching trade expectations.

Stressful weather during August can threaten the yield potential of corn and soybeans in the United States, the world's biggest corn supplier and the No. 2 soybean exporter after Brazil. August is a particularly important month for soybean development, when much of the crop is setting pods.

Ukrainian officials are working to release a detained vessel carrying Ukrainian wheat purchased by Egypt's government, Ukraine's Mideast envoy told reporters on Monday.

The vessel, Emmakris III, was detained last month at the request of Ukraine's prosecutor general to investigate its alleged Russian owner, court documents seen by Reuters showed.

Commodity funds were net sellers of CBOT soybean, corn, soymeal, soyoil and wheat contracts on Monday, traders said. (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)

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