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GRAINS-Wheat up for second day on supply concerns, bargain-buying

SINGAPORE, June 21 (Reuters) - Chicago wheat futures rose for a second session on Thursday with prices underpinned by dry weather reducing output in key exporters Russia and Australia. Soybeans ticked up but concerns over U.S.-China trade dispute kept a lid on the market, which dropped to its lowest in almost 10 years on Tuesday. FUNDAMENTALS * The Chicago Board of Trade wheat futures are being supported by dry weather cutting production in Russia, the world's biggest exporter, and Australia, the No.4 supplier. * Dryness in Russia and Australia comes after lack of rains reduced production of Hard Red Winter wheat in the U.S. southern Plains. * The soybean market is facing headwinds from escalation in U.S.-China trade spat. * U.S. President Donald Trump has threatened to impose a 10 percent tariff on another $200 billion of Chinese goods. China's commerce ministry described the threat as "blackmailing" and said Beijing would fight back. * Trump's threat followed his administration's announcement of tariffs on $50 billion of Chinese goods last week, which triggered retaliatory tariffs by Beijing on a slate of U.S. products, including soybeans and corn. * Tuesday's sell-off in soybeans was also driven by generally favourable weather in the Midwest crop belt that has bolstered expectations for big U.S. corn and soy harvests. * However, there is uncertainty about forecast for July and August, which are crucial months for U.S. crop development. * Commodity funds were net buyers of CBOT wheat and soyoil futures contracts on Wednesday and net sellers of soybeans, soymeal and corn, traders said. MARKET NEWS * Asian shares were subdued on Thursday as a lull in the Sino-U.S. trade tussle helped calm nerves enough for the Nasdaq to reach a record high, while tensions in the oil market grew ahead of an OPEC meeting that may expand crude supply. DATA/EVENT AHEAD (GMT) 0645 France Business climate manufacturing June 1100 Bank of England announces rate decision 1230 U.S. Weekly jobless claims 1230 U.S. Philly Fed business index June 1300 U.S. Monthly home price index April 1400 U.S. Leading index May 1400 Euro zone Consumer confidence June Grains prices at 0037 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 488.75 0.50 +0.10% +2.30% 511.13 40 CBOT corn 353.50 -0.75 -0.21% -0.70% 386.91 24 CBOT soy 890.50 1.00 +0.11% +0.17% 983.82 13 CBOT rice 12.65 $0.00 +0.00% -0.75% $12.00 64 WTI crude 65.62 -$0.09 -0.14% +0.85% $68.06 45 Currencies Euro/dlr $1.157 $0.000 +0.03% -0.13% USD/AUD 0.7365 0.000 -0.03% -0.22% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)

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