GRAINS-Drier U.S. Midwest weather forecast lifts corn, soybeans
* Latest forecasts reduce rainfall in dry western Midwest
* Technical buying helps corn rebound from Tuesday plunge
* Soybeans up for third straight day on yield concerns
(Rewrites throughout, adds quotes, updates prices, changes dateline from MILAN, changes byline) CHICAGO, Aug 14 (Reuters) - U.S. soybean rose for a third consecutive day on Wednesday, and corn rebounded from steep losses the previous session as weather forecasts for the Midwest turned drier, threatening yields for the developing crops. Autumn-harvest soybean prices tested Tuesday's 2-1/2 week high while corn rebounded from the sharpest drop in six weeks in the previous session. Drier weather was expected for the Midwest through the end of August and warmer temperatures were slated to arrive beginning next week, said Joel Widenor, meteorologist for Commodity Weather Group. "Our forecast scaled back coverage in Missouri and Iowa compared with yesterday's forecast," he said. "There will be plenty of dry spots in the Midwest which will hinder filling corn and soybeans." The warmer weather will help to accelerate crop development, which has been lagging this season following late spring planting and cooler summer temperatures. But the limited rainfall totals in the forecast come at a critical time for corn, which is currently filling recently pollinated ears with grain, and soybeans, which is adding and filling pods. "Temperatures are going to warm up, so the GDDs (growing degree days) are going to ratchet higher. But we are not out of the woods yet - so any time we have a drier type forecast, the market is going to be sensitive to it," said Ken Smithmier with the Hightower Report. November soybeans on the Chicago Board of Trade rose 2-1/4 cents, or 0.2 percent, to $12.30 a bushel by 11:03 a.m. CDT (1603 GMT). CBOT December corn gained 5-1/4 cents, or 1.2 percent, to $4.52-1/2 a bushel after hitting a near-three-year low the previous day. Strong cash markets around the U.S. Midwest supported the spot September contract, which jumped 10-1/2 cents, or 2.3 percent, to $4.65-3/4 a bushel. Wheat futures drifted lower in light trading amid forecasts for heavy global production, though declines were limited by spillover support from the firmer corn market. CBOT September wheat fell 1-1/4 cents to $6.27 a bushel.
Prices at 11:08 a.m. CDT (1608 GMT)
LAST NET PCT YTD CHG CHG CHG CBOT corn 465.75 10.50 2.3% -33.3% CBOT soy 1365.00 5.25 0.4% -3.8% CBOT meal 434.40 7.50 1.8% 3.3% CBOT soyoil 42.29 -0.29 -0.7% -14.0% CBOT wheat 627.00 -1.25 -0.2% -19.4% CBOT rice 1519.50 13.50 0.9% 2.3% EU wheat 182.00 -1.75 -1.0% -27.3% US crude 106.53 -0.3 -0.3% 16.0% Dow Jones 15,374 -77 -0.5% 17.3% Gold 1332.16 11.47 0.9% -20.4% Euro/dollar 1.3256 -0.0005 0.0% 0.5% Dollar Index 81.6970 -0.0710 -0.1% 2.4% Baltic Freight 1060 53 5.3% 51.6%
(Additional reporting by Julie Ingwersen and Sam Nelson)