GRAINS-Wheat slips as risks of adverse weather recede

CANBERRA, May 27 (Reuters) - Chicago wheat futures extended declines into a third straight session on Tuesday as the risk of crop-damaging weather before the northern hemisphere harvest receded, reinforcing expectations of a well-supplied market.

Corn futures were unchanged, while soybeans rose, helped by a soft U.S. dollar, which made U.S. farm goods more attractive to overseas buyers. .DXY USD/

The most active wheat contract on the Chicago Board of Trade (CBOT) Wv1 had fallen 0.1% to $5.41-3/4 a bushel by 0317 GMT.

CBOT wheat rose from a five-year low of $5.06-1/4 hit earlier this month when worries that adverse weather could reduce wheat production triggered a bout of short-covering.

That rally has stalled as traders concluded that any damage to production would be limited.

"No one is super stressed," said an analyst at a grains trader in Australia, who was not authorised to speak on the record.

The analyst said with northern hemisphere harvests to be ramped up soon, nothing in the outlook pointed to higher prices and the market is also unlikely to slip much lower.

Recent days have seen rain in dry parts of north Germany, forecast rainfall in drought-hit cropping regions in China, an upward revision to wheat yield forecasts in the European Union and an upgraded production estimate for Russia.

Meanwhile, export demand for wheat remains weak and export prices in top shipper Russia dipped last week, analysts said.

CBOT soybeans Sv1 rose 0.4% to $10.64 a bushel and corn Cv1 was unchanged at $4.59-1/2 a bushel.

The U.S. dollar hovered close to Monday's one-month low against a basket of major currencies, having slipped around 10% so far this year. .DXY USD/

Agribusiness consultancy Datagro increased its forecasts for Brazil's 2024-25 soybean and corn crops.

Large speculators reduced their net short position in CBOT wheat futures in the week to May 20 but expanded their net short in corn and switched from bullish to bearish on soybeans.