GRAINS-Wheat rises as dry U.S. weather, wind storms threaten crops

By Michael Hogan

HAMBURG, March 17 (Reuters) - Chicago wheat futures rose more than 2% on Monday as dryness and wind storms in U.S. grain belts caused concern about crop damage, and on hopes smaller Russian exports will generate more demand for U.S. supplies.

The dollar's drop to around 5-month lows, which makes U.S. grains and soybeans cheaper in export markets, also supported.

Corn and soybeans followed wheat up, with gains limited by concerns over tariff conflicts disrupting trade flows.

“Wheat is strongly supported today by concerns about dry weather in U.S. grain belts,” said Matt Ammermann, StoneX commodity risk manager. “Corn and soybeans are seeing spillover support from wheat and the weaker dollar, but soybean gains are limited by slack demand for U.S. supplies.”

Chicago Board of Trade most-active wheat Wv1 was up 2.1% at $5.68-3/4 a bushel at 1125 GMT. Corn Cv1 rose 1.2% to $4.64 a bushel, and soybeans Sv1 edged up 0.05% to $10.16-1/2 a bushel.

“U.S. and Russian wheat production regions look dry and the U.S. certainly needs more rain,” Ammermann said. “In addition, very strong wind storms in parts of the U.S. Plains and Midwest in past days have raised concern that wheat plants have suffered damage, although the level of actual damage is still debated.”

More U.S. wind storms are forecast this week, with dryness making wheat vulnerable to damage.

"Russian wheat exports are slowing down, which could help U.S. sales, along with the weaker dollar, as U.S. export prices are among the world’s cheapest."

Russia's March wheat exports are estimated to fall, consultancy Sovecon said on Monday. Russia’s government has sought to cut wheat exports to keep domestic flour and bread prices low.

"Strong demand for Brazilian supplies also weakens soybeans, with firm Brazilian price premiums illustrating the transfer of Chinese soybean demand to Brazil during the trade and tariff disputes," Ammermann said.