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GRAINS-Corn rebounds on technical support, set for biggest weekly loss in nearly 2 yrs

CANBERRA, May 14 (Reuters) - U.S. corn futures rose more than 0.5% on Friday, as technical support lifted up prices from a two-week low hit earlier in the session, though the market was set for its biggest weekly loss in nearly two years on higher-than-expected global production outlook.

FUNDAMENTALS

* The most active corn futures contract on the Chicago Board Of Trade was up 0.8% at $6.80 a bushel by 0134 GMT, after hitting its lowest since April 30 of $6.66 a bushel earlier in the session.

* For the week, corn was down more than 7%, set for its first weekly loss in seven and its biggest weekly fall since August 2019.

* The most active soybeans futures contract was up 0.5% for the week, its seventh straight weekly gain.

* The most active wheat futures contract was down nearly 6.5% for the week, its biggest weekly slide since August.

* The USDA earlier this week projected corn stocks at the end of the 2021/22 marketing year at 1.5 billion bushels, above most analysts’ expectations and up from 1.257 billion bushels expected to remain at the end of 2020/21.

* Russian agriculture consultancy SovEcon raised its forecast for Russia’s 2021 wheat crop by 1 million tonnes, to 81.7 million tonnes, citing a larger-than-expected harvest area.

* Forecasts called for beneficial rains into next week in the southern U.S. Plains winter wheat belt that could bolster yield prospects.

MARKET NEWS

* The dollar took a breather but looks set to post weekly gains against a basket of currencies as investors try to assess the risk of U.S. inflation rising faster than expected and prodding the Federal Reserve to hike interest rates sooner.

* The dollar took a breather but looks set to post weekly gains against a basket of currencies as investors try to assess the risk of U.S. inflation rising faster than expected and prodding the Federal Reserve to hike interest rates sooner.

* U.S. shares rebounded on Thursday after falling for three consecutive days and benchmark Treasury yields dipped, as investors snapped up stocks that would benefit from an economic recovery and shrugged off worries about rising prices, for now.

Reporting by Colin Packham; Editing by Rashmi Aich

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