SYDNEY - U.S. corn futures firmed on Wednesday, rebounding from losses of more than 1.5% in the previous session, though gains were checked by weaker oil prices and forecasts for crop friendly weather across a key North American growing region.        

FUNDAMENTALS 

The most active corn futures on the Chicago Board Of Trade were up 0.5% at $3.69-3/4 a bushel, as of 0040 GMT, having closed down 1.6% on Tuesday.

The most active soybean futures were up 0.1% at $8.94-1/2 a bushel, having closed down 0.7% on Tuesday.

The most active wheat futures were up 0.2% at $4.85 a bushel, having closed down 0.9% in the previous session.

Corn and soybean crops have been lagging their normal pace of development after rain-delayed planting this spring, and the warm weather was seen boosting crop maturity.

The U.S. Department of Agriculture (USDA) on Monday said 55% of U.S. corn was in good-to-excellent shape, above analyst expectations of 54%. The harvest is also underway.

Corn had also rallied on the strength of oil, which climbed after attacks on Saudi Arabia. Traders positioned as a result on  expectations of increased ethanol demand.

Soybean crop conditions slipped to 54% good-to-excellent, in line with expectations.

The USDA on Tuesday said private exporters reported the sale of 260,000 tonnes of soybeans to China. It was the third daily soy sales announcement in a row involving the world's top importer, with total sales reaching 720,000 tonnes.

News that African swine fever was found in South Korea also rattled grain markets amid worries that a broader spread of the deadly disease could dent feed grain demand from the major importer.

MARKET NEWS 

The U.S. dollar fell on Tuesday in range-bound trading on the eve of an expected interest rate cut by the Federal Reserve, weakened by a fall in oil prices and a stronger euro. 

Oil prices extended their losses from the previous session on Wednesday, after Saudi Arabia's energy minister said the Kingdom will restore lost oil production by the end of the month. 

Wall Street ended higher on Tuesday as the impact of weekend attacks on Saudi Arabia's biggest oil refinery faded and investors awaited a widely expected Fed interest rate cut on Wednesday.         

(Reporting by Colin Packham; Editing by Aditya Soni)

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