GRAINS-Wheat firms, traders readying for USDA reports

* Wheat extends gains into second session

* Activity remains cautious ahead of USDA reports

* Corn near unchanged, soybeans edge higher

By Colin Packham

SYDNEY, June 26 (Reuters) – U.S. wheat futures edged higher for a second session on Thursday as the grain recovered from a four-month low earlier this week, but trade was cautious ahead of export data and a U.S. government report on plantings and grain inventories.

Corn rose for the first time in four sessions, while soybeans firmed for a second consecutive day.

Chicago Board of Trade front-month wheat futures added 0.1 percent to $5.76-1/4 a bushel by 0236 GMT, having closed up 0.8 percent on Wednesday.

“Wheat is continuing its rebound from the four-month low earlier in the week and there is also a bit of position squaring ahead of the USDA reports,” said Andrew Woodhouse, grains analyst, Advance Trading Australasia.

September wheat futures were unchanged at $5.84-1/4 a bushel, having firmed 0.6 percent in the previous session.

While wheat was drawing support, analysts said the market was waiting for the widely watched U.S. reports.

The U.S. Department of Agriculture on Thursday is expected to report U.S. wheat export sales were 300,000 to 500,000 tonnes last week, according to a Reuters poll of analysts.

The USDA will issue will issue its U.S. quarterly grain stocks as of June 1, with analysts expecting wheat stocks to be pegged at 598 million bushels, which would be the lowest in six years.

While U.S. stocks are seen at a multi-year low, Canadian farmers scaled back the area they planted with wheat this spring and seeded about the same area with canola as they did last year, a Reuters poll of 18 traders and analysts showed ahead of a government farm report on Friday.

Front-month corn futures rose 0.1 percent to $4.41-1/4 a bushel, having closed down 0.5 percent on Wednesday.

Corn sales were expected to be pegged at between 350,000 to 600,000 tonnes and soybean sales at 250,000 to 550,000 tonnes.

November soybean futures rose 0.1 percent to $14.17-1/2 a bushel, having closed up 0.4 percent in the previous session.

The USDA will likely report U.S. corn stocks totaled 3.722 billion bushels as of June 1, a four-year high for that date, and soybean stocks came to 378 million bushels, a 37-year low, according to a Reuters survey of analysts.

Grains prices at 0236 GMT Contract

Last

Change Pct chg Two-day chg MA 30 RSI CBOT wheat

584.25

0.00 +0.00%

616.60 29 CBOT corn

441.25

0.25 +0.06%

-0.40%

457.88 36 CBOT soy

1230.50

1.50 +0.12%

+0.49%

1267.12 43 CBOT rice

$13.72

$0.04 +0.29%

+0.15%

$13.88 62 WTI crude

$106.61

$0.11 +0.10%

+0.55%

$104.39 63 Currencies

Euro/dlr

$1.363 $0.000 +0.02%

+0.20% USD/AUD

0.940

0.000 -0.02%

+0.42% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Colin Packham; Editing by Richard Pullin)

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