GRAINS-Wheat set for weekly gain pct as dry weather threatens global output

SYDNEY, May 25 (Reuters) - U.S. wheat edged up on Friday, holding near a 10-month high reached in the previous session, as concerns over dry weather in major global exporters put the grain on track for a second weekly gain. FUNDAMENTALS * The most active wheat futures on the Chicago Board Of Trade is up nearly 2.5 percent for the week so far, extending two-week gains to more than 6 percent. * Wheat hit a high of $5.45-1/4 a bushel on Thursday, the highest since July 2017. * The most active soybean futures is up nearly 4 percent for the week, on course to post the biggest weekly gain since July 2017. * The most active corn futures is up nearly 0.5 percent for the week, set for a second straight weekly gain. * Forecasts for hot, dry conditions in the U.S. Plains wheat belt has fuelled concerns about drought-reduced crops in key production areas. * Meanwhile, dry weather in parts of Canada, Australia and Russia - all major wheat exporters - have fuelled expectations of a tightening supply balance after record inventories had been forecast for this season. * Dry weather in wheat areas of southern Russia over the next 10 days could deplete subsoil moisture there to the lowest since at least 2008, Radiant Solutions said. * A Chinese importer on Tuesday purchased one cargo of U.S. soybeans for August shipment from the U.S. Pacific Northwest, according to traders, marking the first sale of U.S. soybeans to China since the two countries stepped back from a full-blown trade war. MARKET NEWS * The dollar slipped against a basket of currencies on Thursday and hit a two-week low against the Japanese yen, after U.S. President Donald Trump scrapped a summit meeting with North Korean leader Kim Jong Un and as traders booked profits following the greenback's recent rally. * Oil prices fell about $1 on Thursday, with expectations building that reduced supplies from Venezuela and Iran could prompt OPEC to wind down output cuts in place since the start of 2017. * U.S. stocks ended down slightly on Thursday after President Donald Trump cancelled a planned summit with North Korea's Kim Jong Un and threatened to impose tariffs on auto imports, though losses were limited by gains in Netflix and General Electric. DATA AHEAD (GMT) 0800 Germany Ifo business climate May 0830 UK GDP 2nd release Q1 1230 U.S. Durable goods Apr Grains prices at 0038 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 531.50 1.25 +0.24% +0.09% 504.94 68 CBOT corn 404.50 0.25 +0.06% -0.98% 398.99 61 CBOT soy 1038.50 2.75 +0.27% -0.07% 1032.01 64 CBOT rice 11.51 -$0.05 -0.48% -3.48% $12.76 17 WTI crude 70.74 $0.03 +0.04% -1.53% $69.59 47 Currencies Euro/dlr $1.172 $0.000 -0.01% +0.19% USD/AUD 0.7570 0.000 -0.05% +0.15% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Colin Packham; editing by Richard Pullin)

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