GRAINS-Wheat falls from near 6-week high, dry weather limits losses

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SYDNEY - U.S. wheat futures edged lower on Monday, retreating from a near six-week high touched earlier in the session, though losses were checked as dry weather across several major exporters was set to crimp production.

FUNDAMENTALS

* The most active wheat futures on the Chicago Board Of Trade were down 0.3 percent at $5.14-1/4 a bushel by 0121 GMT, having earlier hit a high of $5.20-1/2 a bushel - the highest since June 13. Wheat closed up 2.3 percent on Friday.

* The most active soybean futures were up 0.1 percent at $8.65-3/4 a bushel, having firmed 0.4 percent on Friday.

* The most active corn futures were up 0.36 percent at $7.53-3/4, having gained 1.1 percent in the previous session.

* Wheat is supported by dry weather that threatens harvest prospects in Europe, the Black Sea region and Australia.

* Consultancy Agritel forecast the French soft wheat crop, excluding durum, at 34.2 million tonnes, more than 6 percent below last year's crop. Countries like Germany and Ukraine are also expected to suffer losses from drought.

* Soybeans are under pressure from ongoing U.S.-China trade war.

* The United States and China have slapped tariffs on $34 billion of each other's imports and U.S. President Donald Trump on Friday said he was ready to slap tariffs on all $500 billion of imported Chinese goods.

MARKET NEWS

* The dollar slumped against the yen and other major peers on Monday after U.S. President Donald Trump expressed discomfort with the greenback's strength and global finance leaders ended a weekend meeting with little consensus on how to resolve multiple disputes over U.S. tariff actions.

* Oil prices were mixed on Monday as finance ministers and central bank governors from the G20 warned that risks to global growth have increased with rising trade and geopolitical tensions among other vulnerabilities.

* U.S. stocks ended slightly lower on Friday as escalating trade anxieties driven by U.S. President Donald Trump's latest tariff threats against China offset a string of robust earnings led by Microsoft.

(Reporting by Colin Packham; Editing by Subhranshu Sahu)