GRAINS-Wheat up for third day; new-crop corn at 2-1/2 year low
* China buying lifts wheat
* Tight stocks boost old-crop corn and soybeans
* New-crop corn and soybeans down on good weather
(New throughout to reflect resumption of trading after U.S. Independence Day holiday break) CHICAGO, July 5 (Reuters) - U.S. wheat rose for the third straight trading session on Friday on reports that China was buying wheat on the world market, including purchases from the United States, and on bargain buying after wheat fell to a one-year low early in the week. The U.S. Department of Agriculture (USDA) on Friday confirmed trade talk that China had bought 120,000 tonnes of U.S. wheat, and traders said there were rumors that China had purchased even more. Old-crop corn and soybean futures rose on tight stocks for each, but new-crop futures contracts eased and December corn dropped to a 2-1/2 year low on nearly ideal U.S. crop weather that could lead to bumper production. "There are still tight supplies of old-crop and tight farmer selling. It's old-crop versus new-crop and is just confirming what the government told us last month," said Jason Roose, an analyst for U.S. Commodities, Des Moines, Iowa. USDA in its June supply/demand and quarterly stocks reports confirmed that the supply of corn in the United States was at its lowest in 16 years and the soybean supply was at a nine-year low. USDA will release updated supply and demand data in its July report due on Thursday, July 11. At 9:45 a.m. CDT (1445 GMT), Chicago Board of Trade (CBOT) July wheat was up 3/4 cent at $6.58-1/2 per bushel. CBOT old-crop July corn was up 4-3/4 cents at $6.83, and new-crop December was down 6-3/4 cents at $4.96. Old-crop July soybeans were up 6-1/2 cents at $15.90, and new-crop November was down 7-1/2 cents at $12.43-1/4. "There is no threat from weather in sight; it's just the opposite of a year ago. We came in after July 4 a year ago and it was hot and dry, but it's just the opposite this year," Roose said. The worst drought since the 1930s slashed U.S. corn and soybean production last year, but crop weather this season indicates potential record large output, even though the crops were seeded later than normal. Nearly ideal crop weather is expected to continue in the U.S. Midwest corn and soybean growing region into at least mid-July, boosting prospects for a bumper production year, an agricultural meteorologist said on Friday. "The bottom line is, there is no severe heat and no big areas of the Midwest will go without rain for the next week to 10 days," said John Dee, meteorologist for Global Weather Monitoring.
Prices at 9:56 a.m. CDT (1456 GMT)
LAST NET PCT YTD CHG CHG CHG CBOT corn 684.75 6.50 1.0% -1.9% CBOT soy 1590.25 6.75 0.4% 12.1% CBOT meal 490.50 -0.10 0.0% 16.6% CBOT soyoil 47.25 0.03 0.1% -3.9% CBOT wheat 661.50 3.75 0.6% -15.0% EU wheat 194.25 -2.50 -1.3% -22.4% US crude 101.96 0.72 0.7% 11.0% Dow Jones 15,003 14 0.1% 14.5% Euro/dollar 1.2828 -0.0085 -0.7% -2.8% Dollar Index 84.4330 1.2020 1.4% 5.8%
(Editing by John Wallace)