Wheat up for 2nd day as dryness threatens US crop; corn, soybean prices firm

SINGAPORE, June 5 Chicago wheat futures rose for a second session on Monday, with prices underpinned by forecasts that hot and dry weather could hit U.S. production.
Soybean prices gained more ground on strong demand, although gains were trimmed by record South American supplies.
The Chicago Board of Trade most-active wheat contract had climbed 0.5 percent to $4.31-3/4 a bushel by 0304 GMT, having closed up 0.1 percent on Friday. 
Soybean futures rose 0.2 percent to $9.23 a bushel and corn advanced 0.3 percent to $3.74 a bushel.
"Dryness and hot weather are causing concerns for the U.S. wheat crop. Adverse weather will continue to support wheat prices this week," said Kaname Gokon from Tokyo brokerage Okato Shoji.
"We could see prices rise above $4.35 a bushel this week."     Wheat was supported by forecasts of warm and dry weather in the northern U.S. Plains, potentially stressing newly planted spring wheat, and as excessive rains have swamped fields in the southern Plains and the Midwest.
The U.S. Department of Agriculture has rated 62 percent of the U.S. spring wheat crop as good to excellent, down significantly from 79 percent a year earlier.
Weekly USDA export sales data for soybeans came in above trade expectations, and the government through its daily reporting system said private exporters sold 200,000 tonnes of U.S. soybeans to Spain, which has struggled with drought.
But plentiful supplies capped gains in soybean markets.
Informa Economics, a private analytics firm, on Friday raised its estimate of Brazil's 2016/17 soybean harvest to 114.5 million tonnes, from 113 million last month, trade sources said.