U.S. wheat up 1 percent as more cold forecast

(Reuters) - Cold weather forecasts lift wheat: wheat and corn were oversold, due for a recovery, talk continues that China bought U.S. corn and active U.S. corn and soybean seedings

 (Adds close of U.S. trading)
    By Sam Nelson
    CHICAGO, April 23 (Reuters) - U.S. wheat rose 1 percent on Monday supported by short-covering and by forecasts for another cold snap in the United States that could pose a threat to
crops. Corn also rose 1 percent due to the cold weather forecasts and to persistent talk that China bought U.S. corn. Soybeans finished lower and down from a 7-1/2 month high.
    Grains showed impressive independent strength in the face of bearish macro economic indicators including a firm dollar, falling equities, crude oil and precious metals.
    "First of all wheat and corn were oversold and there is covering from that. Secondly I think people are hesitant now to sell wheat with cold weather around, there is concern we may see
production declines," said Shawn McCambridge, analyst for Jefferies Bache.
    Friday's Commodity Futures Trading Commission (CFTC) commitments of traders report showed that as of last Tuesday, speculators added 6,896 contracts to their net short position in
CBOT wheat. They were net short 96,705 contracts. 

    Wheat and corn futures fell sharply on Friday and soybeans surged. The fund selling of grains and buying of oilseeds on that day left each market vulnerable to a correction or reversal
during Monday's trading session.
    Soybeans eased on profit-taking after surging to 7-1/2 month highs the previous session. Friday's surge was related to waning prospects for this year's South American crop due to drought,
the chance for dwindling U.S. soy supplies this year and to persistent buying of soy by China, the world's largest soybean importer.
    CBOT May wheat was up 9-1/4 cents per bushel at $6.25, May corn was up 10 at $6.22-1/2 and May soybeans were down 9-1/2 at $14.37-1/4.

 Although U.S. winter wheat futures contracts traded on the Chicago Board of Trade and Kansas City Board of Trade rose, the thinly traded spring wheat futures at the Minneapolis Grain
Exchange were nearly flat and Paris Euronext wheat fell. MGEX May spring wheat was up 3/4 cent at $7.91-3/4. KCBT May wheat was up 9-1/4 at $6.35-1/4. European benchmark wheat was down due to the forthcoming
expiry of the last old crop contract for the current season and a broad sell off on financial markets fueled by concerns over a recession across the region. [ID:nL5E8FN65V}
    Euronext May milling wheat was down 1.75 euro per tonne at 214.75 euros per tonne.
    Agricultural meteorologists on Monday said there was the potential for another spell of cold weather in the United States by the weekend. John Dee, meteorologist for Global Weather Monitoring, said
the cold snap probably would not harm crops. On Monday the confidence was low for freezing temperatures then. "It's too early to know for sure, but there could be some
freezing temperatures by Friday and Saturday in Michigan, northern Indiana and Ohio, then north of I-80 by early next week," Dee said.
    The U.S. Department of Agriculture (USDA) at 3:00 p.m. CDT (2000 GMT) on Monday will release updated weekly crop progress numbers.	Some traders said the U.S. winter wheat condition rating may
decline from the 64 percent good-to-excellent condition rating of last week. Corn and soybeans continued to find support from talk China was buying U.S. produced commodities and the U.S. Department of
Agriculture (USDA) on Monday said exporters had sold 120,000 tonnes of corn and 165,000 tonnes of soybeans to unknown destinations.
    Traders said the sales probably were made to China and they expect more sale announcements soon. Active planting of the U.S. corn and soybeans continues and
U.S. farmers are expected to seed the largest area to corn in 75 years.	The early corn plantings may lead to a doubling of corn stocks next year and also help cushion the bullish impact of
dwindling stocks this season due to early harvest.
    A Reuters poll of 17 analysts indicated that USDA on Monday would show U.S. 2012 corn planting was 31 percent complete, the second fastest on record, and soybean planting was at a record 4
percent complete. The USDA has only released its estimate of soybean planting for the third week in April once before, in 2007.	

 Prices at 1:59 p.m. CDT (1858 GMT)
                              LAST      NET    PCT     YTD
                                        CHG    CHG     CHG
 CBOT corn                  622.50    10.00   1.6%   -3.7%
 CBOT soy                  1437.25    -9.50  -0.7%   19.9%
 CBOT meal                  399.80    -6.20  -1.5%   29.2%
 CBOT soyoil                 55.09    -0.74  -1.3%    5.8%
 CBOT wheat                 625.00     9.25   1.5%   -4.3%
 CBOT rice                 1567.00    16.50   1.1%    7.3%
 EU wheat                   214.75    -1.75  -0.8%    6.0%

 US crude                   103.02    -0.86  -0.8%    4.2%
 Dow Jones                  12,907     -122  -0.9%    5.6%
 Gold                      1636.11    -5.76  -0.4%    4.6%
 Euro/dollar                1.3144  -0.0046  -0.4%    1.5%
 Dollar Index              79.4180   0.2240   0.3%   -0.9%
 Baltic Freight               1090       23   2.2%  -37.3%

 (Reporting by Sam Nelson. Additional reporting by Mark Weinraub
in Chicago. Editing by Bob Burgdorfer)