GRAINS-Wheat slips on expectations of strong US production

CANBERRA, May 20 (Reuters) - Chicago wheat futures edged lower on Tuesday as expectations of a large harvest in the United States held prices close to last week's five-year low despite concerns that frosts in Russia and dry conditions in China could damage crop production.

Corn and soybean futures fell.

FUNDAMENTALS

* The most active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 0.1% at $5.28-3/4 a bushel at 0133 GMT. Prices fell as low as $5.06-1/4 on May 13.

* CBOT soybeans Sv1 dipped 0.4% to $10.46-3/4 a bushel and corn Cv1 slipped 0.3% to $4.46 a bushel.

* Wheat prices remained capped by last week's Kansas crop tour, which projected the highest yield since 2021.

* Germany's winter wheat area for the 2025 harvest has meanwhile increased by 12.2% from last year to 2.78 million hectares, Germany's national statistics agency said.

* In Russia, the largest grain-producing region, Rostov, became the latest to declare a state of emergency for farming due to spring frosts.

* However, Russian wheat export prices remained unchanged last week, with Agriculture Minister Oksana Lut estimating the damage at only about 10% of last year's level.

* Commodity funds have built up a large net short position in CBOT wheat but were net buyers on Monday, traders said.

* In other crops, the U.S. Department of Agriculture said on Monday that U.S. farmers had planted 78% of the nation's corn crop by Sunday, below most analysts' expectations, and soybean planting was 66% complete, slightly above most predictions.

* Argentina's agricultural heartland has been lashed by heavy rains in recent days, bringing widespread flooding. The Buenos Aires grains exchange said it could be forced to trim its soybean harvest outlook.

MARKETS NEWS

* Longer-dated Treasury yields gained while the U.S. dollar broadly eased on Monday amid concerns about the U.S. debt load and a tax-cut bill, following Moody's downgrade of the country's sovereign credit rating. MKTS/GLOB