GRAINS-Wheat slips on forecasts for better cropping weather

CANBERRA, April 15 (Reuters) - Chicago wheat futures edged lower for a second day on Tuesday, under pressure from weather forecasts predicting improved conditions in the U.S. wheat belt, as well as declining prices in Europe and Russia.

Corn and soybeans were holding close to seven-week highs reached in recent sessions, thanks in part to a rapid weakening in the U.S. dollar. .DXY USD/

FUNDAMENTALS

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 0.1% at $5.46-3/4 a bushel at 0041 GMT after reaching $5.56-3/4 on Friday, its highest level since March 24.

CBOT soybeans Sv1 fell 0.1% to $10.40-1/4 a bushel and corn Cv1 was 0.2% higher at $4.86 a bushel.

The dollar index .DXY was up 0.3% but remained close to last Friday's three-year low after U.S. President Donald Trump's tariff policies shook global markets. USD/ MKTS/GLOB

Weather forecasts predicted much-needed rain next week in the U.S. Plains, as well as in cropping regions in France and Germany.

Around 32% of the U.S. winter wheat crop was affected by drought as of April 8, the U.S. Department of Agriculture said last week, up from 15% a year ago.

The USDA in a weekly crop progress report rated 47% of the U.S. winter wheat crop in good to excellent condition, down from 48% a week earlier and in line with trade expectations.

May wheat BL2K5 on the Euronext exchange fell on Monday to its lowest in a year, and analysts said Russian wheat export prices edged lower last week as weather for the new crop improved.

U.S. crop shipments are holding up well, with the USDA reporting weekly export inspections of wheat and corn that exceeded analyst expectations. USDA/I

Traders say top global soy buyer China seems to be closed to U.S. grain and soybeans for the foreseeable future but they hope negotiations can open U.S. sales to other markets.

Elsewhere, Argentina's exchange-rate overhaul is unlikely to translate into immediate crop sales, analysts said, though a suggestion by the country's president that a temporary export tax break will not be extended after June could incentivise shipments.

Ukraine's 2025 grain harvest could be 8% larger than last year, thanks to a larger corn crop, analysts APK-Inform said.

MARKETS NEWS

U.S. shares gained on Monday and the dollar dipped after the White House exempted smartphones and computers from U.S. tariffs but President Donald Trump said semiconductor levies were likely. MKTS/GLOB