GRAINS-U.S. wheat rallies on bargain buying; corn firm, soy weak
* Strong world demand supports rise in wheat futures
* U.S. weather outlook weighs on soybeans
* Corn snaps six-session losing streak
(Recasts with U.S. trading, byline, dateline pvs HAMBURG/SINGAPORE) CHICAGO, July 30 (Reuters) - U.S. wheat futures rose 1.5 percent on Tuesday and were on track for their biggest gain in three weeks after signs of rising global demand, traders said. Corn futures ticked higher, breaking a streak of six straight losing sessions as bargain buyers stepped into the markets after prices fell to their lowest level in nearly three years. The wheat market helped pull up corn prices, but gains were muted by expectations of a bumper U.S. crop this fall. The crop expectations also weighed on soybeans, which were mostly lower after opening firm. "We are trying to bounce, but not doing a very good job of it. The reason why is, we've got one-inch rains moving through Missouri into Illinois," said Terry Linn, a grains analyst with the Linn Group. "It is another reminder that our weather is pretty bearish. In general, we have got good crops coming. You put another rain on it and you are that much closer to making the crop." At 10:03 a.m. CDT (1603 GMT), Chicago Board of Trade September wheat futures were up 10 cents at $6.61-1/2 a bushel. "There seems to be some buying interest today as lower prices are shaking out some importer interest, with Korea in the market for corn, Taiwan buying wheat and both Egypt and Jordan tendering for wheat," one European trader said. Japan said on Tuesday it would resume buying U.S. western white wheat after halting imports of that variety for months following the discovery of an unapproved genetically modified strain in Oregon. U.S. flour millers are reporting quality problems in the soft red winter wheat due to heavy rain, which soaked much of the Midwest crop in early July. The quality concerns could lend further support to prices as export demand ramps up. China, which has been snapping up wheat cargoes from Australia and the United States, has bought more than 1.5 million tonnes of Australian wheat in the past six weeks, a Chinese official think-tank said on Tuesday. The country's wheat imports are rising as frost and wet weather hurt the domestic crop, leaving about 16 percent unfit for human consumption. Traders remained focused on U.S. weather. The outlook for cooler-than-usual temperatures and some rain across broad stretches of the Midwest during the next week was keeping buyers of both commodities cautious. CBOT September corn was up 5-1/2 cents at $4.94-3/4 a bushel while new-crop December corn rose 4-1/2 cents to $4.77-3/4 a bushel. "We expect corn prices to remain under pressure as the crop condition is stable and the weather looks good," Joyce Liu, an analyst at Phillip Futures, said. CBOT August soybeans were 1-1/2 cents lower at $13.66 a bushel. The new-crop November soybean contract was off 4 cents at $12.16 a bushel.
Prices at 10:04 a.m. CDT (1504 GMT)
LAST NET PCT YTD CHG CHG CHG CBOT corn 495.50 6.25 1.3% -29.0% CBOT soy 1366.50 -1.00 -0.1% -3.7% CBOT meal 441.10 2.20 0.5% 4.9% CBOT soyoil 42.47 0.00 0.0% -13.6% CBOT wheat 661.75 10.25 1.6% -14.9% CBOT rice 1579.50 -4.50 -0.3% 6.3% EU wheat 188.00 1.75 0.9% -24.9% US crude 103.15 -1.39 -1.3% 12.3% Dow Jones 15,539 17 0.1% 18.6% Gold 1325.52 -1.47 -0.1% -20.8% Euro/dollar 1.3254 -0.0006 0.0% 0.5% Dollar Index 81.8580 0.1950 0.2% 2.6% Baltic Freight 1067 -8 -0.7% 52.6%
In U.S. cents, benchmark contracts, except EU wheat (euros) and soymeal (dollars). CBOT wheat, corn and soybeans per bushel, rice per hundredweight, soymeal per ton and soyoil per lb.
(Editing by Grant McCool)