* Soybeans bounce back as rains may delay U.S. harvest
* Wheat up on Egypt's move to cancel ergot-free wheat
(Adds details, quotes)
By Naveen Thukral
SINGAPORE, Sept 22 Chicago soybean futures
bounced back on Thursday, rising for five out of six sessions,
with prices buoyed by forecasts of more rains in the U.S.
Midwest that threaten to further delay the harvest.
Wheat rose for a fifth consecutive session as Egypt's move
to reverse its controversial zero-tolerance policy on a common
grains fungus supported the market.
Chicago Board Of Trade most-active soybean contract
rose 0.5 percent to $9.80-3/4 a bushel by 0247 GMT, having
closed down 1.4 percent on Wednesday.
Wheat gained 0.2 percent to $4.08-1/2 a bushel. Corn
climbed 0.2 percent to $3.40-3/4 a bushel.
"The U.S. Midwest has been trending a little drier this
week, but forecasters say their models are now pointing to
wetter conditions for the more soybean heavy production regions
today through to Sunday," said Tobin Gorey, director of
agricultural strategy at Commonwealth Bank of Australia.
"The accompanying cooler temperatures have the potential to
lengthen drying times."
Wheat is drawing support after Egypt's reversal of its
zero-tolerance policy on the fungus ergot raised hopes of fresh
purchases by the world's top buyer of the grain.
Egypt has seen its imports grind to a halt since it imposed
the ban on ergot last month, with three successive state tenders
cancelled because of boycotts by suppliers who say the condition
is impossible to guarantee.
Signs of rising demand from India provided additional
support to the wheat market.
Indian importers have purchased around 76,000 tonnes of
Ukrainian-origin wheat in the past couple of weeks after two
years of poor domestic output.
Corn is also being supported by a fungal disease in parts of
the U.S. Midwest.
A fungal disease called Diplodia ear rot is lurking in corn
fields in some U.S. Midwest regions, and experts and farmers
fear lower yields and crop damage that could force growers to
accept steep discounts on the cash market.
Diplodia causes a whitish mould between kernels and is
common in corn, but its emergence this year appears to be more
severe than normal, particularly in central Illinois and western
Ohio following a rainy summer, agronomists in those states said.
Commodity funds were net buyers of Chicago Board of Trade
wheat futures contracts and net sellers of soybean, soymeal and
soyoil contracts. They were net even in corn.
Grains prices at 0247 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 408.50 0.75 +0.18% +0.62% 414.97 73
CBOT corn 340.75 0.75 +0.22% +0.07% 333.66 73
CBOT soy 980.75 5.25 +0.54% -0.91% 977.57 53
CBOT rice 9.70 $0.02 +0.21% -2.02% $9.83 55
WTI crude 45.79 $0.45 +0.99% +5.41% $45.66 61
Euro/dlr $1.119 $0.000 +0.02% +0.31%
USD/AUD 0.7631 0.001 +0.10% +0.99%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per
RSI 14, exponential
(Reporting by Naveen Thukral; Editing by Tom Hogue)