GRAINS-U.S. corn futures rise on tightening U.S. stocks

SYDNEY, June 30 (Reuters) - U.S. corn futures continued to rally in early Asian trade on Thursday ahead of a key government report that is likely to show tightening U.S. stocks because of lower production and strong demand.

Chicago corn for July delivery Cc1 advanced 0.5 percent to $7.01-1/2 per bushel following a 2.2 percent jump on Wednesday as old crop stocks tightened. The more actively traded December contract rose 0.38 percent to $6.53 but remained below a record of over $7.00 per bushel reached earlier this month when concerns about rain delayed plantings worried traders.

July wheat Wc1 rose 0.5 percent to $6.44-1/2 per bushel but still short of highs above $8.80 per bushel reached in February when fears were at their height that drought would impact on U.S. winter wheat production. Prices have eased as northern hemisphere harvest progresses and there remains ample supplies to meet demand.

Soybeans for July delivery were little changed with the July contract Sc1 up 0.1 percent to $13.35-1/2 per bushel as South American supplies hit international markets.

FUNDAMENTALS

* Floods, rains cast shadow over U.S. crop prospects

* As at June 1, corn stocks were estimated at 3.02 billion bushels, down more than 1 billion bushels from 2010, ANZ Banking Group estimated in a market report.

* ANZ estimated that the market had not yet rationed demand enough to avoid an ending stocks/use ratio of 5 percent this season, the lowest since 1996.

* The bank also estimated that U.S. soybean stocks are estimated at 596 million stocks, up from 25 million bushels in June 2010.

* The average estimate for wheat stocks at 826 million bushels, were down from 973 million bushels in June last year.

* High grain prices have done little to quench the thirst for corn in the livestock and ethanol markets, adding to stocks of the grain.

MARKET NEWS

* Oil jumped as much as 3 percent on Wednesday, ending at the highest level in a week, as sharp draw downs in U.S. crude and gasoline stocks fed a rally spawned when Greece passed an austerity plan to avoid a sovereign debt default. U.S. August crude CLc1 settled at $94.77, gaining $1.88, or 2.02 percent, the highest finish since June 22. {O/R]

* The euro rose to fresh two-week highs on the dollar in Asia on Thursday, swept higher by a wave of stop-loss buying and extending a rally after Greece moved a step closer to securing international aid. The common currency rose as high as $1.4483

after stops were triggered as it broke above the overnight night peak near $1.4450. It last stood at $1.4465.

* Wall Street closed its best three-day run in three months on Wednesday after the Greek parliament approved austerity measures to avoid defaulting on its debt. The Dow Jones industrial average gained 72.73 points, or 0.60 percent, to 12,261.42.

DATA/EVENTS

GMT

0500 - Japan housing starts May

0500 - Japan construction orders May

0600 - UK nationwide house prices June

0600 - German retail sales May

0800 - German unemployment June

1400 - US jobless claims Weekly

1345 - Chicago PMI June

    Grains prices at 0030 GMT                    	
Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI	
CBOT wheat     675.00     0.75  +0.11%    +0.48%     748.81   34	
CBOT corn      653.25     2.75  +0.42%    +0.04%     702.51   49	
CBOT soy      1322.00    -1.00  -0.08%    +0.23%    1354.19   41	
CBOT rice      $14.39    $0.04  +0.28%    -0.07%     $15.25   21	
WTI crude      $94.85    $0.08  +0.08%    +2.11%     $96.86   53	
Currencies                                                    	
Euro/dlr       $1.446   $0.003  +0.23%    +0.65%        	
USD/AUD         1.069    0.001  +0.12%    +1.44%            	
Most active contracts                        	
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight	
RSI 14, exponential    	
	
 (Reporting by Bruce Hextall; Editing by Balazs Koranyi)