COMMODITIES-Oil up on US demand; focus on ECB as Fed disappoints

* Oil up 1st time this week as US crude stockpiles dive
* Soy, corn and wheat fall on rains forecast
* With Fed not signing on new stimulus, focus turns to ECB

By Barani Krishnan
NEW YORK, Aug 1 (Reuters) - Oil closed higher on Wednesday
for the first time this week after surprisingly high U.S. demand
boosted crude prices, while grains markets fell as chances for
rain in the U.S. Midwest snapped a drought-driven rally.
Copper settled down and fell further in after-hours
trade, hitting a one-week low, after the Federal Reserve
disappointed investors by issuing a policy statement that did
not announce further stimulus, although it acknowledged a
weakening American economy.
Oil prices pared gains after the Fed decision. Investors
will now wait to see whether the European Central Bank -- which
meets on Thursday -- announces new measures to boost growth in
the euro zone's most-battered economies.
The Thomson Reuters-Jefferies CRB index, the
commodity market bellwether, settled barely changed after the 1
percent rise in oil and 2 percent gain in gasoline offset losses
across the base metals complex and a wide number of agricultural
markets.
U.S. crude settled at $88.91, gaining 85 cents, after
trading as high as $89.47. London's Brent crude settled
at $105.96, up $1.04 but off the session peak of $106.92.
The U.S. Energy Information Administration reported a 6.5
million barrel drop in domestic crude oil inventories last week.
It was the largest weekly drop in U.S. crude stockpiles since
December and far above a 700,000 barrel drawdown forecast in a
Reuters poll.
U.S. gasoline and distillate stockpiles also fell, going
against the forecast for stock builds.
Data showing U.S. private employers added more jobs than
expected in July also boosted oil. The data comes ahead of
Friday's important U.S. July non-farm payrolls and unemployment
report.
In London, Brent crude's prices were further supported by
news that maintenance work in the UK North Sea will cut output
in September of grades that make up the Brent benchmark for
international trade.
Soybean, wheat and corn prices fell, but closed well above
session lows after forecasters scaled back predictions for rain
in the U.S. Midwest.
Benchmark November soybeans traded in Chicago fell as
much as 2.6 percent before ending 0.7 percent lower at $16.29 a
bushel. Corn closed 0.6 percent lower at $8.00-1/2.
Wheat finished down 1 percent at $8.79-1/2. Wheat
also fell after leading exporter Russia quashed market
speculation that the country would curb exports due to a poor
harvest this year, and France raised its wheat crop estimate.

Prices at 5:19 p.m. EDT (2119 GMT)
LAST/ NET PCT YTD
CLOSE CHG CHG CHG
US crude 88.88 0.85 1.0% -10.1%
Brent crude 105.88 0.96 0.9% -1.4%
Natural gas 3.171 -0.038 -1.2% 6.1%

US gold 1604.20 -7.20 -0.4% 2.4%
Gold 1599.34 -13.95 -0.9% 2.3%
US Copper 337.50 -4.25 -1.2% -1.8%

Dollar 83.117 0.482 0.6% 3.7%
CRB 299.230 -0.280 -0.1% -2.0%

US corn 799.00 -2.25 -0.3% 23.6%
US soybeans 1629.00 -12.00 -0.7% 35.9%
US wheat 898.75 -5.50 -0.6% 37.7%

US Coffee 174.60 0.20 0.1% -23.5%
US Cocoa 2401.00 25.00 1.1% 13.8%
US Sugar 22.57 0.05 0.2% -2.8%

US silver 27.535 -0.379 -1.4% -1.4%
US platinum 1400.20 -15.60 -1.1% -0.3%
US palladium 582.60 -7.95 -1.3% -11.2%

(Editing by David Gregorio)