Recasts with wheat prices rising, updates pprices

PARIS/CANBERRA, May 28 (Reuters) - Chicago grain futures gained on Thursday, buoyed by a rise in oil prices, as doubts grew over the prospects for a deal to reopen the Strait of Hormuz, supporting crops used as feedstock to make biofuel.

The most-traded wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 0.6% at $6.26-1/2 a bushel as of 1145 GMT.

CBOT corn Cv1 was 1.1% higher at $4.57-3/4 a bushel and soybeans Sv1 were up 0.8% at $11.94-3/4 a bushel.

Oil prices jumped over 2% after Iran's Revolutionary Guards said they had targeted a U.S. airbase in response to an earlier U.S. attack in the port city of Bandar Abbas. O/R

CBOT wheat has fallen 9% from a two-year high of $6.88-1/4 on May 14. Prices still remain up nearly 24% so far this year though.

Analysts say the poor condition of drought-afflicted U.S. wheat has now been priced in and the market is looking ahead to months of harvest pressure on prices.

As harvest time nears, the scope for supply disruption reduces, said Nick Carracher, head of Australian agricultural consultants Lachstock.

"The balance sheet is becoming more known by the day," he said. "There aren't that many problems out there."

Consultants Sovecon on Wednesday raised their 2026 wheat production forecast for top exporter Russia to 90.3 million metric tons from 89.7 million tons.

Meanwhile, sources said China has issued export quotas for urea fertiliser, which could help bring down global prices that have soared since the Iran war choked off Middle East supply.

High fertiliser prices threaten to reduce production over time - with a Ukrainian government minister saying on Wednesday that the country's farmers used less during spring sowing.

Prices at 0940 GMT
	Last	Change	Pct Move
CBOT wheat Wv1	626.50	4.00	0.64
CBOT corn Cv1	457.75	5.25	1.16
CBOT soy Sv1	1194.75	9.50	0.80
Paris wheat BL2U6	211.50	1.00	0.48
Paris maize EMAc1	248.25	7.75	3.22
Paris rapeseed COMc1	528.50	3.00	0.57
Euro/dlr EUR=	1.16	-0.001	-0.12
Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne