GRAINS-US soybean futures up on short covering, dry weather

SYDNEY, Dec 16 (Reuters) - U.S. soybean futures rose
on Friday, extending gains on short-covering due to dry weather
in key crop areas of South America that could lower production
and boost demand for supplies from the United States.
U.S. corn and wheat futures were little changed with
concerns about poor demand for U.S. supplies and abundant world
stocks weighing on sentiment.
CBOT March wheat was flat in early trade to $5.79-1/2
per bushel.
March corn was also steady at $5.78-3/4.
January soybeans were trading up 0.3 percent at $11.15.

FUNDAMENTALS
* The Canadian Parliament gave final approval on Thursday to
a government bill to end the Canadian Wheat Board's 68-year-old
grain marketing monopoly, but legal challenges threaten to leave
farmers and the grain industry in limbo into the New Year.

* U.S. grain suppliers are likely to start winning tenders
to sell wheat to Egypt in February, when Russian wheat loses its
competitive edge and Argentina retreats from the market, an
official with a U.S. industry group said on Thursday.

* The euro held above an 11-month low against the dollar
but fell against the yen, with investors mindful of the euro
zone debt crisis and a likely recession in the region looking
to sell on any upticks.
* A record domestic harvest and easing food inflation show
little sign that China, the world's second-largest corn
consumer, will resume imports from global markets until maybe
the second half of next year, analysts said.
* USDA said export sales of corn last week totaled 505,900
tonnes, within estimates for 400,000 to 600,000 tonnes.

* Commodity Weather Group citing slightly wetter weather in
the six- to 10 day forecast for south America but said central
Argentina could come up short. Far southern Brazil is expected
to be drier this week with slight relief at the end of the
10-day period.
* Rain and snow in the U.S. Plains early next week and more
rain seen for the U.S. Midwest. The precipitation is buoying
prospects for the 2012 wheat, corn and soybean crops.

* South Korea bought 30,000 tonnes of U.S. corn for March
delivery via private talks earlier this week.
* USDA reported export sales of U.S. soybeans in the latest
week at 468,600 tonnes, within trade estimates for 400,000 to
600,000 tonnes.
* Commodity Weather Group citing slightly wetter weather in
the six- to 10-day forecast for South America but said central
Argentina could come up short. Far southern Brazil is expected
to be drier this week with slight relief at the end of the
10-day period.
* Malaysian crude palm oil futures hit a six-week low, with
a global commodities sell-off stretching from the previous day
over concerns the European debt crisis was spiraling out of
control.
* The U.S. Agriculture Department said on Thursday morning
that weekly export sales of wheat were 318,300 tonnes, near the
low end of forecasts for 300,000 to 400,000 tonnes.

* Syria tendered to buy 100,000 tonnes of soft milling wheat
from any origin. It bought wheat from the Black Sea region,
likely Romania, in its last purchase.
* Argentina's 2011/12 wheat harvest is seen at 13.6 million
tonnes, up 600,000 tonnes from previous forecast, due to early
rains - Buenos Aires Grains Exchange.

MARKET NEWS
* The euro clung to modest gains against the dollar in Asia
on Friday, having ended three straight sessions of losses after
a Spanish bond sale attracted solid demand and upbeat U.S.
economic data helped revived risk appetite.
* Oil fell a second straight day on Thursday in light
volume trading, giving up early gains as investors remained
cautious about prospects for economic growth in Europe and
China.
* U.S. stocks rose on Thursday, as signs of strength in the
economy and higher-than-expected profit at FedEx outweighed more
warnings about Europe.
(Reporting by Amy Pyett; Editing by Lincoln Feast)

Grains prices at 0056 GMT
Contract Last Change Pct chg Two-day chg MA 30
RSI
CBOT wheat 579.50 0.25 +0.04% -0.22% 614.65
40
CBOT corn 578.75 -0.25 -0.04% -0.34% 615.75
31
CBOT soy 1115.00 3.25 +0.29% +1.36% 1147.06
43
CBOT rice $13.72 $0.05 +0.40% +0.51% $14.65
29
WTI crude $93.63 -$0.24 -0.26% -1.39% $98.27
32
Currencies

Euro/dlr $1.303 $0.001 +0.12% +0.41%

USD/AUD 0.995 0.003 +0.31% +0.40%

Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per
hundredweight
RSI 14, exponential