* Soybeans at 7-month high as Chinese buying drives up prices
* Dry weather in parts of U.S. Midwest supports corn, soybeans (Adds quote in paragraph 3)
SINGAPORE, Aug 27 (Reuters) - Chicago soybeans rose to a seven-month high on Thursday, gaining for a fourth consecutive session, as the market was underpinned by strong Chinese demand and dry weather in parts of the U.S. Midwest.
Corn rose after closing marginally lower on Wednesday, while wheat gained for a third straight session.
“U.S. dryness is a concern but not a major issue, the key driver here is Chinese buying,” said one Singapore-based trader.
The most-active soybean contract on the Chicago Board Of Trade added 0.1% to $9.25 a bushel by 0354 GMT, near a session high of $9.26-3/4 a bushel - the highest since Jan. 21.
Corn rose 0.5% to $3.56 a bushel and wheat was up 0.1% at $5.40-1/2 a bushel.
Private exporters reported the sale of 400,000 tonnes of soybeans to China for delivery in the 2020/21 marketing year, the U.S. Agriculture Department said Wednesday morning.
China, by far the world’s biggest soybean importer, has stepped up purchases of U.S. beans in recent weeks and there are expectations of more purchases after talks between senior officials of the two countries.
Hot and dry weather across the U.S. Midwest raised concerns about the soybean crop as it nears the end of the key development phase following near-perfect weather throughout planting and early growth stages.
Adverse weather in leading exporting nations is underpinning wheat prices.
A sharp fall in France’s soft wheat harvest this year due to adverse weather throughout the crop cycle will reduce exports from the European Union’s largest grain producer by nearly 40% in 2020/21, consultancy Agritel forecast on Wednesday.
Commodity funds were net buyers of Chicago Board of Trade soybean, wheat and soyoil futures contracts and net sellers of soymeal and corn, traders said. (Reporting by Naveen Thukral; Editing by Anil D’Silva)
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