* Corn rises over 4 pct to 4-month highs on dry weather
* Soybeans, palm oil up over 3 pct; copper snaps 3-day fall
* Oil rises as storm threat shuts Gulf of Mexico output
* Coming Up: U.S. new home sales; 1400 GMT
By Manolo Serapio Jr
SINGAPORE, June 25 Corn jumped more than 4
percent to four-month highs and oil rose for a second session on
Monday, buoyed by risks to supply from drought and a storm in
the United States.
Corn's gains spilled over to the rest of the agricultural
market, with soybeans and palm oil rising more than 3 percent,
while copper rebounded from a three-day slide amid optimism
ahead of a summit to tackle the euro zone debt crisis.
The gains in commodities defied the weakness in other
riskier assets, with Asian shares and the euro slipping on
concern a European Union Summit later this week is unlikely to
yield any concrete, much less bold, measures to resolve Europe's
2-1/2-year old crisis.
Corn led gains as dry weather in the U.S. Midwest threatened
harvest of the world's top corn supplier at a time when the
global market is relying on a bumper crop to replenish tight
stocks. The U.S. corn stockpile is projected to fall to a
16-year low by Aug. 31.
Chicago Board of Trade corn for December delivery rose
as much as 4.4 percent to $5.78-1/2 per bushel, its loftiest
since Feb. 7. By 0552 GMT, it was up 4.3 percent at $5.77-3/4.
CBOT November soybeans climbed 3.5 percent to $14.23,
just off a contract high of $14.24-/12. July wheat rose
2.4 percent to $6.89-1/2, near the session high of $6.91-1/2, a
level last seen on May 22.
"It is very much a weather-related rally in this session,"
said Luke Mathews, commodities strategist at Commonwealth Bank
"Corn and soybeans are drawing support from dryness in the
eastern corn-belt in the United States and wheat is drawing
support from dryness in Ukraine and Russia."
Malaysian crude palm oil rose as much as 3.6
percent as lower U.S. soybean harvest could curb supply of
soybean oil and boost demand for the cheaper palm oil.
Corn and soybean futures in China's Dalian
hit their highest since early May.
Although far from the steep gains in the agriculture
markets, supply worries also lifted oil prices after U.S.
companies shut nearly a quarter of the nation's oil and natural
gas production in the Gulf of Mexico as a precaution ahead of
Tropical Storm Debby.
The U.S. Gulf of Mexico is home to about 20 percent of the
nation's oil production.
Recovering from two straight weeks of losses, Brent crude
rose 45 cents to $91.43 a barrel. U.S. oil gained
47 cents to $80.23.
Copper rose 1 percent to $7,383 a tonne, after
hitting six-month lows on Friday, as investors responded
positively to news that the leaders of Germany, France, Italy
and Spain together backed a 130-billion euro ($163
billion)package to revive growth in the euro zone.
Investors are closely watching the EU leaders summit on
Thursday and Friday, bracing for disappointment but keen to put
money to work on any signs of a unified and comprehensive plan
to tackle the region's 30-month-long debt crisis.
"The success of the summit can probably best be measured by
whether it achieves a meaningful and lasting decline in Spain's
bond yields," Ric Spooner, chief market analyst at CMC Markets,
said in a note.
($1 = 0.7977 euros)
(Additional reporting by Naveen Thukral and Florence Tan;
Editing by Himani Sarkar)