GRAINS-Corn, soy rise with oil; wheat rally pauses on rain forecast

Updates with European trading, changes dateline

Crude oil steadies as Iran war disruption persists

Wheat traders assess rain chances after rally on drought

- Chicago corn and soybean futures rose on Thursday with support from crude oil, while wheat eased on rain forecast after a two-day rally on dry conditions in the U.S. Plains.

The most-active corn position on the Chicago Board of Trade Cv1 was up 0.9% at $4.47 a bushel by 1240 GMT, and soybeans Sv1 added 0.8% to $11.66-3/4 a bushel.

CBOT wheat for July delivery WN26 was down 0.5% at $5.98-1/2 a bushel.

Oil regained ground as optimism over a possible resumption of U.S.-Iran talks to end their war was tempered by the ongoing closure of the Strait of Hormuz to regular shipping. O/R

Corn and soybean-derived soyoil are widely used in biofuel, making them sensitive to oil fluctuations.

Corn also drew support from U.S. export demand.

Wheat, meanwhile, has diverged from oil movements in recent days, with attention shifting to risks to U.S. hard red winter wheat crops from drought in part of the U.S. Plains.

Prices rose earlier this week after lower-than-expected weekend rainfall and a drop in weekly U.S. crop ratings.

The latest weather forecasts now show increased chances of rain relief.

After more crop stress was expected this week in a swathe of the Plains, moisture in the central Plains from next week could avert further pressure on yields, the Commodity Weather Group said in a note.

A backdrop of ample global stockpiles could limit fresh gains in wheat prices until later in the year, when it becomes clearer how much production has been lost to adverse weather and high fuel and fertiliser prices, said Rabobank analyst Vitor Pistoia.

Top wheat exporter Russia said on Tuesday 97% of its winter crops were currently in good and satisfactory condition.

A rise in the dollar index =USD also capped Chicago grain prices by making them more expensive overseas. FRX/

Prices at 1240 GMT

Last

Change

Pct Move

CBOT wheat Wv1

598.50

-2.75

-0.46

CBOT corn Cv1

447.00

4.00

0.90

CBOT soy Sv1

1166.75

8.75

0.76

Paris wheat BL2c1

194.75

-1.00

-0.51

Paris maize EMAc1

203.75

-1.00

-0.49

Paris rapeseed COMc1

501.50

1.50

0.30

WTI crude oil CLc1

91.79

0.51

0.56

Euro/dollar EUR=

1.18

0.00

-0.10

Most active contracts - Wheat, corn and soy U.S. cents/bushel, Paris futures in euros per metric ton