GRAINS-US rain forecast, tariff limbo pause dollar-driven rally in grains and soybeans

By Michael Hogan and Peter Hobson

CANBERRA/HAMBURG, April 14 (Reuters) - Chicago wheat, corn and soybeans fell on Monday as the market awaited fresh tariff news after dollar weakness triggered strong gains last week, while forecasts of rain next week in the U.S. grain belt also depressed prices.

Dealers were awaiting developments in U.S. import tariffs and trade negotiations, after grains and soybeans last week rose strongly as a weaker dollar made U.S. supplies more competitive in export markets and the U.S. Department of Agriculture forecast tighter U.S. corn and soybean inventories.

Chicago Board of Trade most-active wheat Wv1 fell 0.9% to $5.50-1/2 a bushel at 1047 GMT. Corn Cv1 fell 0.3% to $4.88-1/2 a bushel and soybeans Sv1 fell 0.1% to $10.41-3/4 a bushel.

“Markets are looking fatigued and are awaiting the next tariff developments, with the focus coming back to grain market fundamentals,” one European trader said

“There is some decent rain forecast for the dry U.S. plains which is welcome. It looks like U.S. farmers are set to make speedy progress with spring sowings, which is also bearish."

Traders say China looks closed for U.S. grain and soybean exports for the foreseeable future, but they hope negotiations can open U.S. sales to other Asian export markets following President Donald Trump's decision last week to pause many tariff increases.

Thailand on Friday said it would cut tariffs on U.S. corn imports.

China's soybean imports tumbled in March to their lowest for the month since 2008.

"I think prices will be range-bound this week," said Rabobank analyst Vitor Pistoia. "But everyone will be looking to the White House."

Russian wheat exports are still at a stable level of almost 2 million metric tons a week despite government efforts to slow the flows.

"Wheat demand is also very weak as the week starts with hardly any new purchase tenders from importers," the European trader said. GRA/TEND