GRAINS-U.S. corn rises, wheat up on Chinese demand
* New-crop corn extends gains on f'casts of hot weather
* Wheat rises for 2nd day on strong Chinese imports
* China books largest U.S. wheat purchase in a decade
(Adds analyst, updates prices) AMSTERDAM/SINGAPORE, July 9 (Reuters) - U.S. new-crop corn and soybean futures rose for a second consecutive session on Tuesday, underpinned by concern that forecast hot, dry weather in parts of the U.S. grain belt could stunt crop development. Wheat extended gains with support from buying by China, which has booked more than 1.3 million tonnes of U.S. wheat in the past week, including its largest single-day purchase since January 2004. "The development of both corn and soybeans is still lagging considerably behind the long-term average due to the delays to planting resulting from the rain and cold weather ," Germany's Commerzbank said in a statement. "This means there is a risk that the plants will be damaged by high summer temperatures during the critical pollination and kernel filling/pod setting phase and/or by early frost in the run-up to the harvest." The Commodity Weather Group (CWG), a private U.S. weather forecaster, said the southwestern portion of the Midwest should see only limited rain in the next two weeks. The corn market is focusing on the U.S. Midwest as the crop approaches its critical pollination phase, when hot and dry weather can cut yield potential. Much of the crop will be pollinating in the second half of July following planting delays during a cool, wet spring. Chicago Board of Trade December corn rose 1.25 percent to $5.06-3/4 a bushel by 1050 GMT, after sliding to its lowest since late 2010 last week. November soybeans gained 1.6 percent to $12.71-3/4 a bushel, after slipping to its lowest since May 22 in the last session. The U.S. corn crop has improved in the last week and soybean ratings held steady at a historically high level, but both were developing behind schedule, the U.S. Department of Agriculture said in a weekly report on Monday.
The government said 68 percent of the U.S. corn crop was rated in good to excellent condition, up from 67 percent a week earlier. But only 6 percent of the crop had reached the silking stage, lagging the five-year average of 20 percent after delays to planting. For soybeans, the government rated 67 percent of the crop as good to excellent, unchanged from the previous week but the highest rating for early July since 2004. Ten percent of the crop was blooming, compared with the five-year average of 24 percent. In the wheat market, there was support from China's record purchases and estimates of lower output in Russia. The most-actively traded CBOT September wheat contract added 0.83 percent to $6.68-1/2 a bushel. In Paris, November milling wheat was up 1.5 euro or 0.78 percent at 195.75 euros a tonne. The USDA on Monday confirmed private sales of 840,000 tonnes of soft red winter wheat to China for shipment in the 2013-14 marketing year, which began on June 1. It was the third consecutive daily sales announcement of SRW wheat to China, following a 120,000-tonne sale reported on Friday and a 360,000-tonne sale announced on Wednesday. Forecasts for Russia's 2013 wheat crop were cut by two leading agricultural analysts on Monday due to drought in several growing regions and lower-than-expected yields, in the first such downgrades this year.
"The market will watch closely for Thursday's USDA (U.S, Department of agriculture) report and their take on Russian production in wheat," analyst FCStone said in a daily note. Farm office FranceAgriMer expects this year's French soft wheat crop to rise 0.7 percent on 2012 to 35.9 million tonnes, echoing a forecast by France's farm ministry, data published by the office on Tuesday showed. Earlier on Tuesday, France's farm ministry had also pegged the French 2013 soft wheat harvest at 35.9 million tonnes, a forecast slightly below the market's estimate at around 36-37 million tonnes.
* Prices at 1100 GMT
Product Last Change Pct Move End 2012 Ytd Pct Paris wheat 195.25 1.75 +0.90 202.50 -3.58 London wheat 167.75 1.05 +0.63 153.65 9.18 Paris maize 218.25 1.00 +0.46 196.75 10.93 Paris rape 402.75 3.25 +0.81 438.25 -8.10 CBOT wheat 665.50 5.50 +0.83 652.75 1.95 CBOT corn 697.00 5.25 +0.76 646.60 7.79 CBOT soy 1625.50 16.25 +1.01 1198.50 35.63 Crude oil 103.00 -0.14 -0.14 98.83 4.22 Euro/dlr 1.29 0.00 -0.06 1.30 -0.73 * Paris futures prices in Euros per tonne, London wheat in pounds per tonne and
CBOT in cents per bushel.
(Editing by David Evans)