* Wheat falls as rains boost crop outlook
* Corn down 0.5% after three straight days of gains (Adds comment in paragraph 3, updates prices)
By Naveen Thukral
SINGAPORE, May 20 (Reuters) - Chicago wheat lost ground on Wednesday, with prices set to fall for a third session out of four, as improved weather in key exporting countries and slowing demand due to the COVID-19 pandemic weighed on the market.
Soybeans edged higher, while corn fell after three sessions of gains as oil prices weakened.
“The wheat area under threat from dry conditions has diminished so that risk is coming out for the market for now,” said Tobin Gorey, director of agriculture strategy at Commonwealth Bank of Australia.
The most-active wheat contract on the Chicago Board of Trade edged down 0.2% to $4.98 a bushel by 0155 GMT, not far from a two-month low of $4.94 a bushel it touched on Monday.
Soybeans rose 0.2% to $8.44 a bushel, while corn lost 0.5% to hit $3.20 a bushel.
Rains across the Northern Hemisphere have improved conditions for wheat crops which will be harvested in the coming months, easing supply concerns.
Lower oil prices further pressured prices of corn, which is used to make alternative fuel ethanol.
Oil prices dipped on Wednesday as concerns over the lasting economic fallout from the pandemic outweighed signs of improving demand and production cuts by major oil producers.
U.S. farmers have planted 80% of their intended corn acreage and 53% of their soybean crop, the U.S. Department of Agriculture said on Monday. Planting of both crops was well ahead of the typical pace.
U.S. farmers who grow crops including corn and soybeans will receive coronavirus assistance payments based on either half of their 2019 production or the supplies they had on hand as of Jan. 15, the government said on Tuesday.
Commodity funds were net buyers of CBOT corn and wheat contracts, and net sellers of soybean, soymeal and soyoil contracts on Tuesday, traders said. (Reporting by Naveen Thukral; editing by Uttaresh.V and Devika Syamnath)