Corn, wheat, soybeans up on Greek vote, USDA

HAMBURG: Chicago corn futures rose 2.9 percent and wheat jumped 2.2 percent on Wednesday as optimism Greece will accept an austerity package steadied commodity markets, analysts said.

Renewed concerns about US crops and investor positioning ahead of a key US government report on Thursday also supported grains markets.

"There is more optimism that Greece will approve its programme of spending cuts which is creating a greater risk appetite in the overall commodities complex," said Commerzbank analyst Carsten Fritsch.

"The recent price falls in grains appear to have been overdone in view that we are facing pretty tight supplies."

The US Department of Agriculture (USDA) report on US plantings on Thursday could bring the grains supply outlook back into market focus, he said.

Chicago Board of Trade July corn rose 2.8 percent to $7.02-1/2 a bushel at 1108 GMT. Corn climbed to $7.05-1/4 in earlier Asian trade, the highest since June 22.

CBOT July wheat gained 2.2 percent to $6.54-1/4 a bushel. CBOT soybeans for July delivery added 1.0 percent to $13.44-1/3 a bushel.

European benchmark wheat futures in Paris were even stronger than US futures amid hopes that Greece's parliament would pass a crucial austerity plan, which traders said would be a positive signal for the global economy.

Paris Benchmark November milling wheat on the Euronext exchange was 3.5 percent higher at 202.00 euros a tonne. Paris futures had already rebounded 2 percent on Tuesday after closing at their lowest level in eight months on Monday.

The weaker dollar against the euro was also providing support on Wednesday, traders said.

Traders said the publication of the USDA report on Thursday is expected to show a large drop in spring wheat areas after adverse weather hindered planting.

The US Agriculture Department decreased good-to-excellent crop ratings for the first time this year on Monday for the corn and soybean crops due to heavy rains last week.

And there was news that as many as 6.3 million acres could go unplanted this year in the top wheat growing state of North Dakota.

Spring wheat futures rose 1.9 percent on Wednesday after climbing 4 percent in the last session at the Minneapolis Grain Exchange after a USDA official said a quarter of North Dakota's farmland could go unplanted this year due to incessant rains.

"Generally, expectations are for a bullish USDA report with excessive rain in the US corn belt and large areas of wheat not planted in Dakota," a European trader said. "We could see a renewed focus on tight supply fundamentals."

Copyright Reuters, 2011