* Wheat to 1-1/2 week low on strong dollar, technical selling * Corn down on lower wheat, good Midwest crop weather * Soybeans mixed as rains stall planting in Midwest (Rewrites throughout, updates prices, new byline, changes dateline from SINGAPORE/PARIS) By Karl Plume CHICAGO, May 26 (Reuters) – U.S. wheat futures plunged more than 3 percent on Tuesday as pressure from a strong dollar and technical selling outweighed concerns about crop damage due to heavy rain in the southern Plains. Corn prices slid about 1 percent on spillover weakness from tumbling wheat and generally favorable crop development weather around the U.S. Midwest, while concerns about rain-delayed planting supported soybean values. Wheat traders are awaiting reports on the extend of crop damage following torrential rains in Texas and Oklahoma over the long holiday weekend. Analysts expect the U.S. Department of Agriculture to confirm a slight decline in U.S. winter wheat ratings in a weekly report due later on Tuesday. [L1N0YH14B] “The trade has recognised the lower supply due to the weather. But they also realize the lower demand that the stronger dollar is creating,” said Mike Zuzolo, president of Global Commodity Analytics. More precipitation was expected from Wednesday to Saturday before easing in the most-affected southern Plains belt for the rest of the two-week outlook period, the Commodity Weather Group said in a note. The dollar hit one-month highs against a basket of currencies on Tuesday, reflecting a fall in the euro below $1.09. FRX/ A stronger dollar dims the appeal of U.S. grain supplies already struggling to compete in global markets with cheaper offerings from South America, Europe and the Black Sea region. Chicago Board of Trade July soft red winter wheat futures WN5 fell 20-1/2 cents, or 4 percent, to a 1-1/2 week low of $4.94-3/4 a bushel by 11:07 a.m. CDT (1607 GMT). July hard red winter wheat KWN5 dropped 18-1/2 cents, or 3.4 percent, to $5.28 a bushel. Selling in both commodities accelerated as prices fell below their 50-day moving averages. CBOT July corn CN5 shed 5 cents of 1.4 percent, to $3.55 a bushel, the contract’s lowest level since early October. CBOT July soybeans were 1-1/4 cents higher at $9.25-1/2 a bushel after failing to break below Friday’s contract low of $9.22-3/4. Analysts on average expect the USDA to report the U.S. corn crop at 93 percent planted as of last Sunday, above the five-year average of 88 percent, while soybean seeding is expected to be 6 points above average at 61 percent complete. Wet conditions and forecasts for more rain across the Midwest this week could delay the completion of soybean planting, which lent some support to prices. (Additional reporting by Naveen Thukral in Singapore, Gus Trompiz in Paris; Editing by Joseph Radford, Dale Hudson and W Simon) (([email protected]; +1 312 408 8704; Reuters Messaging: [email protected])) Keywords: MARKETS GRAINS/
