GRAINS-Chicago soybeans slip after rally; corn, wheat rise

BEIJING, June 18 (Reuters) - Chicago soybean futures eased as traders booked profits on Wednesday following a three-day price rally driven by strength in soyoil and the broader energy market, though weak demand continued to limit gains.

Corn rose on uncertainty around U.S. Midwest crop weather, while wheat also edged higher.

FUNDAMENTALS

The most-active soybean contract Sv1 dipped 0.21% to $10.72 per bushel, as of 0155 GMT.

Corn Cv1 rose 0.17% to $4.32 a bushel, while wheat Wv1 climbed 0.73% to $5.53 a bushel.

Gains in the energy market, driven by tensions between Israel and Iran, have lent support to agricultural commodities like soybeans and corn. Higher crude oil prices enhance the appeal of soyoil and corn as biofuel feedstocks.

Market participants are closely watching developments in U.S. biofuel policy. A tax bill proposed by Senate Republicans on Monday would extend a clean fuel tax credit through 2031, but reduce 20% of the credit value for biofuels made from feedstocks produced outside the United States.

In top producer Brazil, soy exports are forecast to reach 14.37 million tons in June, up from 14.08 million tons in the previous week, according to Anec, a Brazilian trade group representing grain exporters.

Wheat futures found some support after the U.S. Department of Agriculture reported that the winter wheat harvest was 10% complete, lagging the five-year average of 16%.

Uncertainty about U.S. crop conditions bolstered new crop corn futures, analysts said, as traders await clearer weather forecasts.

Commodity funds were net buyers of Chicago Board of Trade wheat, corn, soybean, soymeal and soyoil futures contracts on Tuesday, traders said. COMFUND/CBT

MARKET NEWS

The U.S. dollar advanced against major currencies on Tuesday, as softer U.S. economic data and geopolitical tensions in the Middle East following an Israeli attack on Iran kept investors on edge ahead of the Federal Reserve's decision on interest rates on Wednesday. MKTS/GLOB

DATA/EVENTS (GMT)

0600 UK Core CPI, CPI YY May

0600 UK CPI Services MM, YY May

0900 EU HICP Final MM, YY May

1230 US Housing Starts Number May

1230 US Initial Jobless Clm 14 Jun, w/e