GRAINS-Corn, soy soar as wetter forecasts threaten U.S. planting

* Rains set to return after brief dry spell
    * Coming up: USDA to update planting progress Monday
    * Japan passes on some U.S. wheat in weekly tender

 (Adds closing prices, weekly price moves)
    By Tom Polansek
    CHICAGO, June 7 (Reuters) - U.S. corn and soybean futures
soared on Friday on worries that wetter-than-expected weather
next week will extend planting delays and reduce output for the
autumn harvest.
    Planting remains slow across the U.S. Midwest due to soggy
conditions, with further disruptions expected from another round
of rain that agricultural meteorologists forecast to start this
weekend. More planting delays could reduce the number of acres farmers sow. Also, key phases of crop development might not happen until the hottest parts of the summer, which could cut yields. "We're a little worried that we might never see a dry day again here in the Midwest," said Jack Scoville, vice president of Price Futures Group in Chicago. Chicago Board of Trade December corn, which represent the crop that will be harvested this fall, climbed 1.9 percent to $5.58-1/2 a bushel and closed up 1.5 percent for the week. New-crop November soybeans rallied 1.9 percent to $13.30-1/4 a bushel to close up 2 percent for the week. Farmers are watching the skies, with showers expected to cover most of the U.S. Midwest from Saturday to Monday, on Wednesday and Thursday, and over the following weekend, said John Dee, meteorologist for Global Weather Monitoring. Rains kept growers out of their fields for most of last week, limiting their ability to finish planting corn or catch up on soybeans, the U.S. Department of Agriculture said in a weekly crop progress report released on June 3. Soybeans were 57 percent planted as of June 1, the slowest
rate for that time of year since 1996 and behind the five-year average of 74 percent, according to the government. Corn was 91 percent planted, behind the five-year average of 95 percent. LOOKING AHEAD The USDA will issue an update on planting progress on June 10 and on grain supplies and demand on June 12. In the monthly supply/demand report, the government is expected to trim its outlook for corn supplies at the end of the next crop's marketing year on Aug. 31, 2104, according to a Reuters poll. The USDA is not expected to make major changes to its forecast for soybean inventories and will likely cut its projection for wheat supplies, analysts said. INDEX FUNDS ROLL Gains in front-month soybean and corn futures were limited by speculative traders rolling out of positions in nearby contracts ahead of the expiration, traders said. July soybeans edged up 0.1 percent to $15.28-1/4 a bushel, while July corn rose 0.5 percent to $6.66-1/4 a bushel. July soybeans gained 1.2 percent for the week, the sixth straight weekly gain. The contract's last run of six or more straight weekly gains ended in the first week of March 2012. JAPAN SNUBS SOME U.S. WHEAT Wheat futures were little changed, with the front-month July
contract sliding 0.2 percent to $6.96-1/4 a bushel. Traders shrugged off Japan's suspension of certain imports for the second straight week after an unauthorized strain of genetically engineered wheat was found in the U.S. state of Oregon in April. Japan's suspension of certain imports will likely be short-lived, said Rich Nelson, chief strategist for Allendale. "The world needs this variety of soft white wheat, which pretty much only comes from U.S.," he said. "If we miss another tender or two out of Japan, I don't think people are going to be too concerned." July wheat was down 1.3 percent for the week, the first loss in three weeks. Prices at 2:46 p.m. CDT (1946 GMT) LAST NET PCT YTD CHG CHG CHG CBOT corn 666.25 3.00 0.5% -4.6% CBOT soy 1528.25 1.00 0.1% 7.7% CBOT meal 452.50 -1.00 -0.2% 7.6% CBOT soyoil 48.53 0.37 0.8% -1.3% CBOT wheat 696.25 -1.50 -0.2% -10.5% CBOT rice 1585.50 0.00 0.0% 6.7% EU wheat 204.00 -0.25 -0.1% -18.5% US crude 96.13 1.37 1.5% 4.7% Dow Jones 15,225 185 1.2% 16.2% Gold 1378.88 -34.27 -2.4% -17.6% Euro/dollar 1.3217 -0.0028 -0.2% 0.2% Dollar Index 81.7020 0.1660 0.2% 2.4% Baltic Freight 812 6 0.7% 16.2% (Editing by David Gregorio; editing by Jim Marshall and Diane Craft)

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