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Wheat rises 1% as dry weather curbs Russian output, corn firm

Chicago wheat futures rose nearly 1% on Monday with the market to climb for three out of
four sessions, underpinned by a reduction in estimates for output in top exporter Russia.
    
Soybeans and corn ticked higher after losing ground last week, as the focus turned to dry weather this week in parts of
the U.S. Midwest. 
    
The most-active wheat contract on the Chicago Board Of Trade added 0.9% at $5.00-1/2 a bushel by 0242 GMT, corn was up 0.3% at $4.25-3/4 a bushel and soybeans gained 0.2% at $9.02-3/4 a bushel.
    
"Downgrades to Russian crop are supporting the market. We have lost as much as 5-7 million tonnes of the crop from when it
was looking the best," said Ole Houe, director of advisory services at brokerage IKON Commodities.
    
"However, the world will still produce at least 30 million tonnes of more wheat than last year and have the absolute
largest wheat crop the world has ever seen."
    
SovEcon, one of Russia's leading agriculture consultancies, said on Friday it had lowered its forecast for Russia's grain
exports in the new 2019/20 marketing season which started on July 1 by 7 million tonnes to 41.9 million tonnes.
    
France should harvest between 38 million and 39 million tonnes of soft wheat this summer, with quality levels meeting export standards, grain exporter Soufflet said on Friday.
    
For corn, threats to production remain as forecasts indicated very hot and dry weather could return to the U.S.
Midwest in the weeks ahead, particularly in parts of producing states Illinois, Iowa and Indiana, Commodity Weather Group said.
    
Agricultural markets are eyeing progress in U.S.-China trade talks. The year-long trade war between the world's two largest
economies has weighed on soybean trading.
    
U.S. and Chinese trade negotiators shift to Shanghai this week for their first in-person talks since a G20 truce last
month, as the two sides struggle to resolve deep differences on how to end the trade war.
    
China has approved soybean imports from all parts of Russia and wheat imports from the Russian region of Kurgan.

 Grains prices at 0242 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  500.50  4.50    +0.91%   +0.20%       515.44  47
 CBOT corn   425.75  1.25    +0.29%   -0.41%       441.08  31
 CBOT soy    902.75  1.75    +0.19%   +0.33%       913.73  45
 CBOT rice   12.20   $0.01   +0.04%   +0.62%       $11.77  79
 WTI crude   56.07   -$0.13  -0.23%   +0.09%       $57.18  
 Currencies                                                
 Euro/dlr    $1.113  $0.000  +0.04%   -0.13%               
 USD/AUD     0.6906  0.000   -0.03%   -0.63%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
Source: Reuters (Reporting by Naveen Thukral; editing by Richard Pullin)

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