Corn and wheat rebound as crude oil soars (RTRS)

• Corn up 1 percent, following broad strength in commodities
• Wheat buoyed by dry conditions in U.S. Delta, Plains
• Soybeans firm on bullish monthly U.S. crush data

New throughout; updates prices, adds quotes, changes byline and dateline, previous SINGAPORE/PARIS

CHICAGO, Nov 15 (Reuters) – U.S. corn and wheat prices each rose about 1 percent on Tuesday as strength in crude oil helped the broader commodities sector rebound from sharp declines a day earlier, analysts said.

Soybean futures were modestly higher, supported by bullish monthly U.S. crushing data.

As of 12:56 p.m. CST (1856 GMT), Chicago Board of Trade December corn CZ6 was up 4 cents at $3.41-1/4 per bushel. December wheat WZ6 rose 3-3/4 cents to $3.97-3/4 a bushel and January soybeans SF7 were up 1-3/4 cents at $9.86 a bushel.

Grains drew support from crude oil, with U.S. crude futures CLc1 rising as much as 5 percent on renewed expectations that the Organization of the Petroleum Exporting Countries would agree later this month to cut production to reduce a supply glut.

“Some people are staring at crude, which is up $2 (per barrel), helping corn,” said Terry Reilly, an analyst with Futures International.

The 19-market Thomson Reuters CoreCommodity CRB Index .TRJCRB was up about 1 percent, a day after falling to its lowest level since early September.

Wheat found support from dry weather in the Mississippi River Delta and portions of the southern Plains that could stress the 2017 winter wheat crop. The crop was 94 percent planted as of Sunday, the U.S. Department of Agriculture said.

“Adverse weather impacting the soft red winter wheat crop in the Delta and dry weather in southern Great Plains, just before dormancy, is propping that market higher,” Reilly said.

Soybeans were modestly higher after a monthly report from the National Oilseed Processors Association showed its members crushed 164.6 million bushels of soybeans in October, the third-heaviest total on record. (Full Story)

Export demand has also been supportive, with the U.S. Department of Agriculture confirming sales of more than 700,000 tonnes of U.S. soybeans so far this week. 

However, Reilly said the torrid pace of soybean sales should stall in early 2017 as the South American harvest gets rolling.

“We expect the U.S. shipments to start falling off in February, and then really drop off a cliff in March,” Reilly said.