U.S., EU grains pressured by weak oil

PARIS/SINGAPORE (Reuters) - U.S. and EU wheat futures extended losses on Wednesday in sympathy with weakening crude oil which triggered broad-based liquidation in commodities markets.

However, traders stressed that good demand would likely support prices, or at least limit the fall.

U.S. soybeans were mixed while corn was up slightly after rising nearly 2 percent in early Asian trade on concerns over hot weather in key growing states.

"Many traders are buying corn, there is a weather premium," said Kazuhiko Saito, strategist at Interes Capital Management Co in Tokyo. "The soybean market is under pressure because soyoil is sharply down due to bad news in crude oil."

By 6:30 a.m. EDT Chicago Board of Trade corn for September delivery was 0.4 percent higher at $5.96-1/2 a bushel after rising as much as 1.8 percent to $6.05 per bushel in early Asian trade.

Soybeans for August delivery were nearly flat, down 1 cent to $13.83-1/4 a bushel, after falling 22 cents in U.S. trading hours.

Crop weather so far this summer has been nearly ideal in the U.S. Midwest, boosting corn and soybean conditions, according to the U.S. Department of Agriculture.

But hot and dry weather would be especially stressful for corn because the crop is currently pollinating, a critical phase of growth for determining yield potential.

USDA said in its weekly progress report that 66 percent of the corn crop was rated good to excellent by Sunday, up from 65 percent a week earlier and 58 percent a year ago.