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313784

GRAINS-Soybeans retreat from 8-1/2-year high as dollar holds gains

CANBERRA, May 13 (Reuters) - U.S. soybean futures fell 1% on Thursday as a strong dollar pushed prices off an eight-and-half-year high touched in the previous session, although tight global supplies provided a floor to the market.

FUNDAMENTALS

* The most-active soybean futures on the Chicago Board of Trade were down 1.1% to $16.24-1/4 a bushel by 0150 GMT, having firmed 1.7% on Wednesday, when prices hit a September 2012 high of $16.67-1/2.

* The most-active corn futures were down 1.7% to $7.02-1/4 a bushel, near the session low of $6.98-1/2 - the lowest since May 5. Corn closed down 1% in the previous session.

* The most-active wheat futures were down 0.6% to $7.25-1/4 a bushel, having closed down 1.6% on Wednesday.

* The U.S. Department of Agriculture projected U.S. 2021/22 soybean ending stocks at 140 million bushels, roughly in line with trade expectations but up only slightly from the 120 million bushels expected at the end of 2020/21, a seven-year low.

* The USDA projected U.S. 2021/22 corn ending stocks at 1.507 billion bushels, up from 1.257 billion expected at the end of 2020/21, and above the average analyst estimate in a Reuters poll for 1.344 billion.

* The USDA lowered its estimate of Brazil's 2020/21 corn crop to 102 million tonnes, from 109 million last month, while Brazilian government supply agency Conab lowered its forecast to 106.413 million tonnes, from 108.966 million in April.

MARKET NEWS

* The dollar held gains on Thursday, supported by higher Treasury yields after a bigger-than-expected rise in U.S. consumer prices fanned fears about an increase in inflationary pressure.

* Oil prices rose to an eight-week high on Wednesday as U.S. crude exports plunged and on signs of a speedy economic recovery and upbeat forecasts for energy demand.

* Asian shares faced a third day of losses on Thursday after a shocking rise in U.S. inflation bludgeoned Wall Street and sent bond yields surging on worries the Federal Reserve might have to move early on tightening. (Reporting by Colin Packham; Editing by Subhranshu Sahu)

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