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GRAINS-Wheat falls more than 1 pct despite dry weather threat persisting

* Dry weather across the U.S. Plains threatens production
* Soybeans fall from 10-week high hit in previous session
* Corn edges lower

By Colin Packham
SYDNEY, Feb 14 (Reuters) - U.S. wheat futures fell more than
1 percent on Wednesday as traders squared positions despite
continued threat of dry weather across a key producing region.
Soybeans fell for the first time in three sessions, though
losses were checked by concerns about dry weather in Argentina,
while corn also edged lower.
The most active wheat futures on the Chicago Board Of Trade
were down 1.3 percent to $4.54-1/2 a bushel, having closed
down 0.7 percent on Tuesday.
"It is dry in the United States and that does pose a threat
to production but it looks like the market is unwinding some
positions that were developed in recent days on this threat,"
said Phin Ziebell, an agribusiness economist for National
Australia Bank.
Wheat is approaching a key development phase and dry weather
across the Plains could damage production.
Meanwhile, France's farm ministry revised down soft wheat
output again due to a reduction in the harvested area.

The most active soybean futures were down 0.3 percent
to $10.09-1/2 a bushel by 0134 GMT, having firmed 1 percent on
Tuesday when prices hit a high of $10.13-1/2 a bushel - the
highest since Dec. 6.
The most active corn futures were down 0.3 percent to
$3.66-1/2 a bushel, having gained 0.1 percent in the previous
session.
Analysts said losses were limited by dry weather across
Argentina, which would likely curtail production.

Grains prices at 0222 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 454.50 -6.25 -1.36% -2.05% 439.27 53
CBOT corn 365.50 -1.25 -0.34% -0.41% 356.39 60
CBOT soy 1007.50 -4.25 -0.42% +0.57% 980.43 65
CBOT rice 12.29 $0.00 +0.00% -0.85% $12.19 46
WTI crude 59.17 -$0.02 -0.03% -0.20% $63.17 19
Currencies
Euro/dlr $1.236 $0.001 +0.11% +0.59%
USD/AUD 0.7861 0.000 +0.03% +0.04%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential

(Reporting by Colin Packham; Editing by Sunil Nair)

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