GRAINS-Soybeans down for third session on S.America rains; wheat, corn fall

* Brazil, Argentina weather seen driving global soybean prices

* Wheat futures drop for 2nd session, corn down for third day (Adds quote in paragraph 3, updates prices)

By Naveen Thukral

SINGAPORE, Jan 20 (Reuters) - Chicago soybean futures slid 1.4% on Wednesday to their lowest in more than one week as rains across South America lifted crop prospects, boosting expectations of improved world supplies.

Wheat and corn prices fell.

"Soybean prices have rallied on the back of Chinese demand but the market is coming down due to South American weather," said one trader at a leading Singapore-based company, which supplies the oilseed to China.

The Chicago Board of Trade (CBOT) most-active soybean contract fell 1.6% to $13.63-1/2 a bushel, as of 0251 GMT, having dropped to lowest since Jan. 11 at $13.57 a bushel earlier in the session. The market is on track for a third straight session of fall.

Wheat fell 0.9% to $6.66-1/2 a bushel and corn lost 0.6% to $5.22-3/4 a bushel.

Rains across much of Brazil's growing regions bolstered parched crops, as the country slowly begins its soybean harvest, which could ease supply worries.

Ukrainian grain traders said on Tuesday they saw no grounds to restrict corn exports for the 2020/21 season, a move requested by animal feed and meat producers to avoid higher feed prices.

Ukraine's economy ministry and agricultural unions will decide on Jan. 25 whether to limit corn exports for the 2020/21 marketing season to 22 million tonnes.

Strong demand for agricultural products is expected to provide a floor under the markets.

The U.S. Department of Agriculture reported private U.S. corn sales totalling 128,000 tonnes to Japan and 100,000 tonnes to Israel, both for shipment in the 2020/21 marketing year.

Top importer China bought a record 11.3 million tonnes of imported corn last year, according to General Administration of Customs data.

Wheat, too, benefited from China's increased imports, with a record 8.38 million tonnes of wheat imported in 2020.

The U.S. Environmental Protection Agency on Tuesday granted three waivers to oil refiners that exempt them from U.S. biofuel blending obligations, a last-minute move before President Donald Trump leaves office on Wednesday.

Commodity funds were net sellers of CBOT corn, soybean, soymeal, wheat and soyoil futures contracts on Tuesday, traders said. (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)

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