GRAINS-Wheat slips again as weather risks recede

CANBERRA/PARIS, May 27 (Reuters) - Chicago wheat fell for a third straight session on Tuesday, as the risk of crop-damaging weather ahead of the northern hemisphere harvest receded, reinforcing expectations of a well-supplied market.

Corn also eased, curbed by a bounce in the dollar =USD and favourable crop prospects in the United States and Brazil, while soybeans rose with support from related vegetable oil markets. POI/

Chicago futures resumed trading on Tuesday after a holiday closure on Monday for Memorial Day.

The most active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 1.7% to $5.33-1/2 a bushel by 1012 GMT, moving further back from last week's one-month peak.

Wheat had rallied last week as worries over adverse weather triggered a bout of short-covering at a near five-year low of $5.06-1/4 hit earlier this month.

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

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

"No one is super stressed," said an analyst at a grains trader in Australia, who was not authorised to speak on the record, adding the approaching wheat harvest season in the northern hemisphere could keep prices under pressure.

Traders were awaiting the U.S. Department of Agriculture's weekly crop report later on Tuesday to see if U.S. winter wheat conditions continued to improve last week.

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

The U.S. dollar regained some ground after Monday's one-month low against a basket of major currencies, eroding the competitiveness of U.S. grain overseas. USD/

CBOT soybeans Sv1 added 0.3% to $10.63-1/4 a bushel and corn Cv1 edged down 0.5% to $4.57-1/4 a bushel.

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

Grains also drew some support from a steadier trend in wider financial markets, including crude oil, as investors digested U.S. President Donald Trump's postponement of threatened tariffs against the EU. MKTS/GLOB

"Macro markets are feeling pretty good after the long holiday weekend," Peak Trading Research said in a note.

"This is a relatively quiet week. We'll see more important (crop) data sets - including key USDA updates - in June."