GRAINS-Futures rise as traders await U.S. acreage, grain stocks data

By Tom Polansek

CHICAGO, June 29 (Reuters) - U.S. grain and soybean futures rose on Friday as investors adjusted positions before the release of closely watched crop reports that are projected to show lower wheat inventories and plantings.

Wheat futures reached their highest prices in two weeks before the U.S. Department of Agriculture, in an acreage report, is expected to lower its planting estimate by 0.5 percent from March to 47.102 million acres, according to a Reuters poll.

A separate report on grain stocks is expected to report wheat inventories as of June 1 were 1.091 billion bushels, down 7.6 percent from a year earlier.

Analysts expect the USDA to raise its estimate for soybean plantings and also peg June 1 soybean stocks at the highest on record for the time of year.

For corn, the average analyst estimate sees the USDA putting June 1 corn stocks at a 30-year high.

"The trade is eager to see if U.S. wheat acres will be reduced like many are expecting," said Kevin Van Trump, president of U.S. consultancy Farm Direction.

September wheat futures were up 21 cents at $5.04-1/2 a bushel at 11:40 a.m. EDT at the Chicago Board of Trade.

December corn futures, which represent the crop that will be harvested this fall, were up 7-1/2 cents at $3.73-1/2 a bushel. November soybean futures were up 6-3/4 cents at $8.90-1/4 a bushel.

A fall in the dollar added support to U.S. grain futures on Friday, as it makes U.S. farm products more attractive on the global market, traders said.

Soybeans sank to their lowest in almost 10 years earlier in June as investors fretted over looming trade tariffs that could disrupt massive flows of U.S. soybeans to China, the world's top importer of the oilseed.

U.S. soybeans will be subject to retaliatory Chinese tariffs from July 6, which could halt shipments.

Favourable U.S. crop weather has also weighed on corn and soy prices.

"At this point, the combination of a good crop and big time trade issues makes it hard to get too excited about buying the soybean market," said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage in Iowa. (Additional reporting by Gus Trompiz in Paris and Colin Packham in Sydney; Editing by Susan Thomas)

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