GRAINS-U.S. corn firm, soybeans slip on rain forecasts

SYDNEY, Aug 2 (Reuters) - U.S. corn rose on Thursday,
recouping some of the losses from the previous session on fresh
concerns over drought damage to yields, while soybeans slipped
on improved crop weather in some key U.S. growing states.
Analysts continue to forecast lower corn and soybean yields
for the 2012/13 season on the back of the worst drought in 56
years.

FUNDAMENTALS
* Chicago Board Of Trade December corn rose 0.37
percent to $8.30-1/2 a bushel after falling 0.6 percent in the
previous session.
* Spot wheat was steady at $879.1/2 a bushel after
falling 2.4 percent in the previous session after Russia quashed
concerns it would curb exports and France raised its crop
estimate.
* New-crop soybeans fell 0.64 percent to $16.18-1/2 a
bushel, having closed down 0.7 percent on Wednesday after
slipping as much as 2.6 percent during the session.
* INTL FC Stone issued findings of U.S. crop survey. Corn
yield forecast at 124.3 bushels per acre and production at
11.043 billion bushels. It pegged the soybean yield at 36.2
bushels per acre, and the crop at 2.730 billion. The forecasts
were much smaller than the U.S. Department of Agriculture's corn
yield estimate of 146 bushels per acre and production at 12.97
billion. Its soybean yield was an estimated 40.5 bushels per
acre, and output of 3.050 billion bushels.
* Reuters analysts poll also forecast lower yields than USDA
estimate. The poll of 13 analysts found the U.S. corn crop will
be the smallest in six years at 11.2 billion bushels, down 2.5
percent from a Reuters poll last week. Yield was pegged at 129
bushels per acre, the lowest in 14 years and down 1.5 percent
from last week.
* Analysts expect soybean yield per acre to be 38.1 bushels,
down 1.2 percent from last week and the lowest figure in nine
years. They see soy production at 2.834 billion bushels, down
2.2 percent from last week and a four-year low.
* Amount of rains forecast across Midwest lowered through
the weekend. Rains needed for soybeans, which is in its critical
yield setting phase of development.
* Wheat under pressure in previous session after Russia said
it would not curb exports. Russia will have an exportable
surplus of wheat in the range of 11 million to 15 million tonnes
in 2012/13 depending on the final 2012 crop which was damaged by
drought, a government source told Reuters on Wednesday.

* However, traders remain cautious on Russian wheat export
prospects.

MARKET NEWS
* The U.S. dollar started Asian trading on the front foot
Thursday having hit a one-week high after the Federal Reserve
refrained from offering new stimulus, leaving the European
Central Bank to carry the burden of the market's hopes.
* Oil futures ended up but off its highs in choppy trading
on Wednesday after the U.S. Federal Reserve said the economy had
lost some momentum but offered no new stimulus that could shore
up growth and translate into higher fuel demand.
* U.S. stocks slipped on Wednesday on disappointment that
the Federal Reserve offered no new measures to stimulate the
economy and after a computer glitch at a brokerage triggered a
spike in volatility shortly after the open.

DATA/EVENTS
DATA/EVENTS (GMT)
0900 EZ Producer prices June
1100 Britain BOE Bank Rate Aug
1145 EZ ECB rate decision Aug
1230 EZ ECB's Mario Draghi to hold press conference
1230 US Jobless claims Weekly
1400 US Factory orders June
1430 US EIA natural gas stocks Weekly
US ICSC chain store sales July

Grains prices at 0042 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 879.50 0.00 +0.00% +33.87% 621.98 51
CBOT corn 803.50 3.00 +0.37% +22.02% 615.38 61
CBOT soy 1618.50 -10.50 -0.64% +31.85% 1168.27 49
CBOT rice $15.63 $0.04 +0.26% +6.69% $14.47 58
WTI crude $88.63 -$0.28 -0.31% -13.92% $98.48 51
Currencies
Euro/dlr $1.222 -$0.073 -5.60% -6.38%
USD/AUD 1.043 0.007 +0.66% +0.63%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential

(Reporting by Colin Packham; Editing by Ed Davies)