GRAINS-Chicago wheat hits near two-year high on weather 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.

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 0.19% at $6.59 a bushel, as of 0143 GMT.

"Prices are rising on the back of drought conditions across US winter wheat regions, developing dryness in Australia, and the potential for reduced yields from reduced nitrogen application in 2026," said Dennis Voznesenski, an analyst at Commonwealth Bank in Sydney.

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.

Corn Cv1 climbed 0.16% to $4.76-1/4 a bushel, hovering near a one-year high, buoyed by strong export demand and weather concerns in the U.S. corn belt.

Expectations of reduced planting due to high fertiliser costs have also supported corn futures.

Early U.S. soybean and corn planting has been progressing well, 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.

Soybeans Sv1 rose 0.19% to $11.91-1/2 a bushel.

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