GRAINS-Corn, wheat rally from 3-month lows on short-covering

* Corn, wheat post strongest gains in a month

•     * Weather worries in U.S., Russia fuel gains in HRW wheat
•     * Late-session fund rolling lifts deferred-month soybeans
• 
  
•  (Updates with late rally in new-crop soybeans, adds closing
• prices, adds weekly trends)
•     By Karl Plume
•     CHICAGO, June 6 (Reuters) - U.S. corn futures jumped more
• than 2 percent on Friday in the strongest gains in a month on
• technical buying and short-covering after sinking to a
• three-month low the previous day.
•     Hard red winter wheat futures surged 3 percent on concerns
• about adverse weather in some key production areas, including
• Russia's Volga Valley and the southern U.S. Plains. The rally
• helped to lift soft red winter wheat from three-month lows.
•     Spot soybean futures fell while deferred months advanced as
• commodity index funds rolled their positions late in the
• session.
•     "We've taken significant value out of both corn and wheat,"
• said Jefferies Bache analyst Shawn McCambridge. "This week the
• interest in continuing to push this market down was starting to
• wane."
•     Corn fell in each of the previous six sessions as benign
• conditions for recently planted maize have raised expectations
• for a record harvest this year.
•     Wheat has also been pressured as the northern hemisphere's
• harvest neared and as U.S. supplies struggled to compete on the
• global market with cheaper grain from other origins.
•     Some traders said the recent pullback in wheat had been
• overdone in view of crop risks in the southern United States and
• Russia.
•     Low yields in the drought-stressed HRW wheat belt had been
• expected, but rains this week raised concerns about quality
• damage to the maturing crop. Meanwhile, hot and dry conditions
• stressed crops in Russia's Volga Valley.
•     Chicago Board of Trade July corn rose 10 cents, or 2.2
• percent, to $4.59 a bushel. It earlier slipped to $4.47, the
• lowest front-month price since Feb. 27, but climbed back
• above the key technical support level of $4.50. But corn fell
• 1.4 percent in the week, its fourth straight weekly decline.
•     CBOT July SRW wheat added 12-1/2 cents , or 2.1
• percent, to $6.18-1/4 a bushel after earlier sinking to $6.03,
• its lowest since Feb. 28. Still, the contract fell for a fourth
• straight week, shedding 1.4 percent.
•     July HRW wheat gained 21-1/2 cents to $7.35-1/2 a
• bushel, a 3 percent gain that was the steepest since April 15.
• The contract's 1.7 percent weekly rise was the first in a month.
•     CBOT July soybeans fell 3-1/2 cents to a 2-1/2 week
• low of $14.57 a bushel, 2.4 percent below a week ago and the
• steepest weekly drop in nearly three months. New-crop November
• soybeans gained 8-1/4 cents to $12.18-3/4 per bushel.
•     Commodity fund rolling riled soybean prices late in the
• session after futures held near previous levels for much of the
• day. Deutsche Bank was in the fourth day of its five-day
• commodity index fund roll, and the S&P GSCI fund began its
• five-day roll on Friday.
•     Traders' attention was also turning to next week's U.S.
• Department of Agriculture monthly crop production and supply and
• demand reports, scheduled for release on Wednesday.
•     
•  RIC    Name                  Last       Pct       Net     Close
•                                       Change    Change  
•  1Cc1   CORN JUL4           458.50      2.23     10.00    449.00
•  1Sc1   SOYBEANS JUL4      1457.50     -0.24     -3.50   1460.50
•  1SMc1  SOY MEAL JUL4       488.60     -0.61     -3.00    490.60
•  1BOc1  SOYBEAN OIL JUL4     38.90      0.83      0.32     38.69
•  1Wc1   WHEAT SRW JUL4      619.50      2.06     12.50    605.75
•  1RRc1  ROUGH RICE JUL4      14.18      0.67      0.10     14.08
•  BL2c1  M.WHEAT EUR NOV4    193.25      1.18      2.25    191.00
•  CLc1   LIGHT CRUDE JUL4    102.77      0.28      0.29    102.48
•  .DJI   DJ INDU AVERAGE   16924.28      0.52     88.17  16836.11
•  XAU=   GOLD               1252.91               -0.38   1253.29
•  .BADI  BALTIC EXCH DRY     989.00      1.23     12.00    977.00
•  .DXY   US DOLLAR INDEX      80.42      0.06      0.05     80.37
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