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GRAINS-Wheat rallies as U.S. rain, Black Sea dry spell fuel crop concerns

* U.S. wheat rebounds after closing lower on Friday * U.S. wheat belts including Kansas set for more rain * Corn, soybeans subdued before weekly planting update (Updates with European trading, changes byline/dateline) By Gus Trompiz and Naveen Thukral PARIS/SINGAPORE, June 3 (Reuters) - U.S. wheat futures rallied on Monday on concerns about harvest risks as more heavy rain was forecast in some U.S. grain belts and warm, dry weather was expected in top wheat exporter Russia. However, corn and soybeans inched lower as the markets digested a U.S. threat of tariffs against Mexico while awaiting a weekly U.S. crop planting report to see if historic rain delays in seeding crops continued last week. The most-active wheat contract on the Chicago Board Of Trade was up 1.5% at $5.10-1/2 a bushel, as of 1158 GMT. Kansas hard red winter wheat led overnight gains in U.S. futures, with spot prices trading up 2.3% at $4.84. Torrential rain, which has slowed corn planting to its slowest pace on record, is increasingly causing concern about damage to U.S. wheat. Latest forecasts showed more heavy rain in part of the central U.S. Plains in the coming two weeks, including in major growing state Kansas. "Wheat has gained largely on the back of rally in corn prices but we have rains hitting the U.S. crop and now people are talking about dryness in the Black Sea region, which reduced yields in Russia and Ukraine," a Singapore-based grains trader said. After intense heat in southern Russia in the past few days, weather outlooks were for more warmer than average temperatures and limited rain in the week ahead. Wheat, corn and soybean futures dropped on Friday, giving up some of their hefty gains during May, after U.S. President Donald Trump threatened to place tariffs on imports of goods from Mexico in response to illegal immigration. The move raised fears about agricultural trade with Mexico, the largest buyer of U.S. corn, and wider effects on economic growth amid an ongoing trade dispute between Washington and Beijing. CBOT corn was down 0.4% at $4.22-1/4 a bushel, while soybeans inched down 0.1% to $8.77-1/4 a bushel. Grain traders were looking ahead to the U.S. Department of Agriculture's weekly crop progress report, issued after the market close on Monday, to see if soggy field conditions continued to blight corn and soybean planting efforts in the Midwest. "If it turns out that a substantial proportion of the acreage still has not been sown, this could lend further buoyancy to the corn price," Commerzbank said. But upward momentum may be curbed after speculative investors reduced sharply their net short positions in corn during the recent rally, the bank added. Prices at 1158 GMT Last Change Pct End Ytd Pct Move 2018 Move CBOT wheat 510.50 7.50 1.49 503.25 1.44 CBOT corn 425.25 -1.75 -0.41 375.00 13.40 CBOT soy 877.25 -0.50 -0.06 895.00 -1.98 Paris wheat Sep 185.50 0.25 0.13 190.50 -2.62 Paris maize Jun 165.75 0.25 0.15 184.50 -10.16 Paris rape Aug 370.00 -0.25 -0.07 362.25 2.14 WTI crude oil 54.16 0.66 1.23 45.41 19.27 Euro/dlr 1.12 0.00 0.10 1.1469 -2.54 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne (Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore, Editing by Sherry Jacob-Phillips and Alexander Smith)

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