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GRAINS-U.S. corn extends rally to seventh day; soybeans rise on output worries

MUMBAI, Aug 25 (Reuters) - U.S. corn futures rose for a seventh straight session on Thursday to trade near a two-month high, supported by concerns that hot and dry weather in the Midwest during key crop development periods could reduce yields.

Soybeans climbed on concerns over supplies from the United States, while wheat futures rose for a fifth straight session on lower supplies from the Black Sea region.

The Chicago Board of Trade (CBOT) most-active corn contract Cv1 was up 0.42% at $6.60 a bushel, as of 0129 GMT. Wheat Wv1 edged up 0.15% to $8.14-1/4 a bushel and soybeans Sv1 rose 0.05% to $14.57-3/4 a bushel.

FUNDAMENTALS
Corn yield prospects in Western Iowa are lower than last year, scouts on an annual tour of top U.S. producing states found on Wednesday. Illinois corn yield prospects and soybean pod counts are also lower than last year but above the three-year average.

Indiana corn yield prospects are lower than last year and below the three-year average, while corn yield prospects and soybean pod counts in Nebraska are also lower than last year and below their three-year averages.

Bumper U.S. crops are needed to offset low global grain supplies, but extreme heat and widespread drought in parts of the Midwest have hampered fields and a string of troubled crop harvests worldwide are pointing to multiple years of tight supplies and high food costs.

Brazil is set to plant its biggest soybean crop to date, as farmers in the world's largest supplier of the oilseed get ready to sow a larger area starting in September.

Extreme heat in China played havoc on Wednesday despite lower temperatures in some regions, with authorities across the Yangtze river basin scrambling to limit the damage from climate change on power, crops and livestock.

MARKET NEWS
Asian share markets were broadly positive while the dollar was slightly weaker, as investors were on tenterhooks waiting for the U.S. Federal Reserve's annual Jackson Hole conference to deliver an insight into the future direction of interest rates.

Oil prices rose in early Asian trade after Saudi Arabia suggested the Organization of the Petroleum Exporting Countries could consider cutting output.
By: via Malaysian Palm Oil Council Russia