SINGAPORE (Dow Jones)--Grains prices were moderately higher in Asia
Wednesday, though the general outlook remains mixed and choppy trade is
expected in coming sessions as the market continues to focus on a combination
of external factors and weather developments in the U.S., traders said.

  Chicago Board of Trade futures mostly declined Tuesday following sharp gains
in the previous session, with traders attributing today's rise to short
covering.

  Despite marginal gains Wednesday, the outlook for CBOT wheat remains weak due
to generally bearish fundamentals, good global supply and generally slow export
demand from the U.S., they said.

  At 0715 GMT, e-CBOT's September wheat contract was up 2.20 U.S. cents at
$5.44/bushel, having settled 7.00 cents lower Tuesday.

  In India, the focus in coming sessions will remain on whether the government
will begin to release a wheat stockpile to prevent prices rising on festive
demand, traders said.

  A government official Tuesday said the Food Corporation of India bought a
record 25.29 million metric tons of wheat from farmers in the procurement
season that ended July 31 - nearly a million ton more than the
24.40-million-ton target the government had set for itself.

  In 2007, India indefinitely extended a two-year-old ban on wheat exports to
curb inflation, but allowed some shipments through diplomatic channels late
last year due to sufficient government stocks.

  Still, last month Farm Minister Sharad Pawar announced in Parliament that the
country would halt wheat and non-basmati rice exports through diplomatic
channels due to concerns over the impact of poor monsoon rains this year on
harvests.

  In other Asian wheat news, Japan's Ministry of Agriculture Tuesday said it is
seeking 148,000 metric tons of U.S., Australian and Canadian wheat in a regular
tender to be concluded Thursday.

  Corn futures also posted moderate gains Wednesday - at 0700 GMT e-CBOT's
September contract was up 0.40 cent at $3.55/bushel - despite a 3.50 cents
decline Tuesday.

  Traders' outlooks remain mixed with some forecasting corn to consolidate
ahead of a key U.S. Department of Agriculture crop production report due Aug.
12, though the focus in coming sessions will also stay on the weather in key
U.S. growing regions.

  Farmers in the U.S. are holding large amounts of grain after declining to
sell during the market's early summer swoon, and may take the opportunity on
the recent rally to unload grain, some analysts said.

  Views of the weather are mixed. The market is watching for forecasts for
increased heat in the U.S. corn belt, but many traders and analysts say that
unless heat and dryness persist for an extended period, the crop will not be
significantly hurt.

  Meanwhile, South Korea's Nonghyup Feed Inc. said it bought 110,000 metric
tons of corn from Glencore for January and February shipment in a tender
concluded late Tuesday. Nonghyup had initially said it was seeking up to
165,000 tons of corn.

  China finally managed to sell some soybean from its reserves Wednesday, after
the weekly sales failed twice consecutively earlier due to high prices.

  The government has so far sold 4,335 metric tons of soybean at a base price
of CNY3,750/ton in Inner Mongolia, and the auction will go on in other regions
through the day.

  Rising global soybean prices have made it possible for the government to sell
the crop at rates higher than those prevailing in the market, said Xiao Jun, an
analyst with commodities consultancy firm Shanghai.