* Crop concerns prompt short covering in Chicago wheat
* Dryness in U.S. wheat areas, excess rains in Australia
(Adds details, quotes)
By Naveen Thukral
SINGAPORE, Oct 11 Chicago wheat rose for a
second session on Tuesday as concerns over dryness in U.S. wheat
growing regions and excessive rains in Australia's grain belt
prompted investors to cover short positions.
Soybeans edged higher after two days of declines although
gains were capped by expectations of higher yields in the United
States while corn extended gains after finishing 1 percent
higher on Monday.
The Chicago Board of Trade most-active wheat contract
climbed 0.4 percent to $4.05-1/4 a bushel by 0236 GMT. That was
near their session-peak of $4.05-3/4 a bushel, highest since
Soybeans gained 0.3 percent to $9.57 a bushel and corn
rose 0.2 percent to $3.43-3/4 a bushel.
"There are more concerns about the Australian crop than what
we had a month ago as the weather outlook going into harvest is
wet on the east coast," said Phin Ziebell, agribusiness
economist at National Australia Bank.
"We are seeing some short covering in CBOT wheat, having
said that we are not talking about a rally, it is just rising
from multi-year lows."
As of Oct. 4, commodity funds held their largest net short
position in CBOT wheat on record, weekly data released on Friday
from the U.S. Commodity Futures Trading Commission showed,
leaving the market vulnerable to short-covering rallies.
Gains in soybeans are being checked by an active harvest
weekend in the U.S. Midwest.
Analysts expect the U.S. Department of Agriculture on
Wednesday to raise its forecast of the U.S. soybean yield, which
the government has already projected at a record-high 50.6
bushels per acre.
The agency in its monthly supply-demand report is expected
to trim estimates for U.S. corn yields.
In news, Russian wheat prices rose slightly last week on the
back of increased demand from buyers and a stronger rouble.
Black Sea prices for Russian wheat with 12.5 percent protein
content were at $173.50 a tonne on a free-on-board (FOB) basis
at the end of last week, up $2.50 from a week earlier, Russian
agricultural consultancy SovEcon said in a note.
Grains prices at 0236 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 405.25 1.50 +0.37% +2.40% 400.74 61
CBOT corn 343.75 0.50 +0.15% +0.95% 334.23 63
CBOT soy 957.00 2.50 +0.26% -0.16% 959.88 48
CBOT rice 10.28 $0.04 +0.44% +1.68% $9.76 82
WTI crude 51.25 -$0.10 -0.19% +2.89% $46.37 73
Euro/dlr $1.113 -$0.007 -0.66% -0.22%
USD/AUD 0.7569 -0.001 -0.08% -0.17%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per
RSI 14, exponential
(Reporting by Naveen Thukral; Editing by Christian