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GRAINS-Wheat eases for 4th session, soybeans up on Argentina dryness

* Wheat at 2-week low on surprise increase in Canadian
output
* Soybeans supported by dry weather hurting Argentine crop

(Recasts, adds details, quotes)
By Naveen Thukral
SINGAPORE, Dec 7 (Reuters) - Chicago wheat futures slid for
a fourth consecutive session on Thursday, hitting the lowest in
more than two weeks as abundant supplies weighed on the market,
with the latest data from Canada showing higher than expected
production.
Soybean edged higher, rising for a fourth session out of
five as concerns over dryness in Argentina supported the market.
The decline in wheat was unsurprising given slow U.S.
exports, said Tobin Gorey, director of agricultural strategy at
Commonwealth Bank of Australia.
"The catalyst seems to have been a higher estimate of
Canada's wheat crop by the local official statistician," he
said. "The estimate was the best part of 10 percent higher than
where analysts were pegging the number, so it was a big shock."
Canadian farmers harvested larger crops than expected this
autumn, reaping record-large canola output and a surprisingly
big wheat crop, a Statistics Canada report showed on Wednesday.

Canola production topped 21.3 million tonnes, 8 percent
higher than Statscan's September estimate. The all-wheat harvest
at 30 million tonnes exceeded Statscan's previous estimate by
10.5 percent.
The Chicago Board of Trade most-active wheat contract
fell 0.1 percent to $4.24-3/4 a bushel by 0256 GMT after
dropping earlier in the session to $4.23-1/2 a bushel, the
weakest since Nov. 21.
Soybeans added 0.1 percent to $10.03-1/2 a bushel and
corn was unmoved at $3.52-3/4 bushel.
Worries about dry weather in Argentina are propelling
soybeans higher with the market climbing to a four-month high on
Tuesday.
The drought that set in around the start of the Southern
Hemisphere springtime in parts of the central farm belt
threatens late-season soybean and corn planting and the
development of already sown crops.
Production of corn-based ethanol hit record rates of 1.108
million barrels per day, according to the U.S. Energy
Information Administration, underlining robust demand for corn.

Commodity funds were net sellers of CBOT soybean, soymeal,
wheat, corn and soyoil futures contracts on Wednesday, traders
said.

Grains prices at 0256 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 424.75 -0.50 -0.12% -2.41% 441.12 27
CBOT corn 352.75 0.00 +0.00% -0.21% 357.81 43
CBOT soy 1003.50 0.75 +0.07% +0.50% 989.33 63
CBOT rice 12.13 -$0.05 -0.45% -0.41% $11.94 42
WTI crude 56.13 $0.17 +0.30% -2.59% $56.35 42
Currencies
Euro/dlr $1.180 $0.001 +0.04% -0.20%
USD/AUD 0.7553 -0.001 -0.13% -0.67%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per
hundredweight
RSI 14, exponential

(Reporting by Naveen Thukral; editing by Richard Pullin)

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