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GRAINS-Wheat, soybeans resume rallies on export prospects

Chicago wheat and soybeans rose on Wednesday, resuming rallies that have been buoyed by strong export prospects.

Corn edged higher on bargain buying after a sharp drop in the previous session.

A major new wheat purchase tender from Egypt, the world's top importer, underlined robust global demand at a time of low U.S. prices.

"We've obviously found a value area for what the world is willing to pay for wheat," said J. Mark Kinoff, president of Ceres Hedge in Chicago.

Part of U.S. wheat's competitiveness in world markets is linked to recent weakness in the dollar, Kinoff said. The greenback was up slightly on Wednesday.

Chicago Board Of Trade front-month December wheat rose 0.3 percent or 1-3/4 cents to $6.48-1/4 a bushel at 9:18 a.m. CST (1517 GMT), on course for its fourth gain in five sessions after falling on Tuesday.

Egypt's main wheat-buying agency GASC set a tender on Tuesday to buy an unspecified amount of wheat from global suppliers.

"The market believes that U.S. soft red winter wheat will be the lowest offer in the Egyptian tender today in (free on board) terms," one German trader said. "But French and Romanian wheat will still have an advantage from lower ocean shipping costs."

Major Australian wheat customer Indonesia said it is looking elsewhere for food imports because of a diplomatic rift with Australia over phone bugging accusations.

Harvest problems in rival exporters Australia and Argentina have also brightened U.S. export prospects, said Commerzbank analyst Michaela Kuhl.

Kinoff said fund buying looked to further support both wheat and soybeans.

January soybeans gained 0.7 percent or 9-1/4 cents to $13.38-1/2 a bushel, touching $13.41, their highest level since Sept. 19.

The soybean market, heading toward its fourth gain in five sessions, has been supported by strong demand from China, the world's biggest importer.

U.S. exporters reported the sale of 235,000 tonnes of U.S. soybeans to unknown destinations, the U.S. Department of Agriculture said on Wednesday, marking the fourth straight business day that it has reported large individual U.S. soybean sales.

December corn added 0.1 percent or 1/4 cent to $4.18-3/4 per bushel, after sliding 1.5 percent on Tuesday.

Traders were making final adjustments to their positions before U.S. markets close for the Thanksgiving holiday on Thursday.

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