GRAINS-Chicago wheat hits near two-year high on dryness concerns

BEIJING, April 29 (Reuters) - Chicago wheat futures hit their highest point in nearly two years on Wednesday, supported by concerns over dryness in the U.S. winter wheat belt and strong demand.

Corn rose and hovered near a two-month high, buoyed by strong export demand and weather concerns in the U.S. corn belt. Soybeans also climbed.

FUNDAMENTALS

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 0.11% at $6.58-1/2 a bushel, as of 0051 GMT.

Soybeans Sv1 rose 0.21% to $11.91-3/4 a bushel, while corn Cv1 climbed 0.05% to $4.75-3/4 a bushel.

Rainy weather in the U.S. Plains wheat belt could alleviate some of the drought stress on crops, but some areas may have already experienced yield loss. Upcoming rain is forecast to miss other dry areas.

A report released on Tuesday by the U.S. Department of Agriculture's attaché in Australia projected the country's 2026/27 wheat harvest at 29 million metric tons, down 19% from the prior year.

Saudi Arabia's main state buying agency, the General Food Security Authority (GFSA), said on Monday that it bought 985,000 tons of wheat in an international tender.

Corn prices gained support from overly wet weather in the U.S. corn belt and robust export demand. Expectations of reduced planting due to high fertiliser costs have also supported corn futures.

Early U.S. soybean and corn planting has been making good progress, though storms expected in the U.S. Midwest could delay seeding in some areas.

Midwest rains are expected to taper by the middle of the week, so farmers are unlikely to remain sidelined for long.

In Brazil, soybean exports were seen reaching 15.87 million tons in April, down slightly from the previous week's estimate of 16.39 million tons, according to ANEC.

Commodity funds were net buyers of CBOT wheat, corn, and soyoil, traders said on Tuesday. CBOT/FUNDS

DATA/EVENTS (GMT)

0900 EU Consumer Confid. Final Apr

1200 Germany CPI Prelim YY Apr

1200 Germany HCIP Prelim YY Apr

1230 US Durable Goods Mar

1230 US Housing Starts Number Mar