GRAINS-Soy soars almost 7 percent on huge sales to China

* Massive China soy buying drives prices higher

* Soy's biggest one-day gain since September

* Extra support from soaring equities/crude oil (Updates to include close of U.S. trading session)

CHICAGO, July 30 - U.S. soybean futures rose nearly 7 percent on Thursday amid huge export sales to China, hitting a two-week high and posting the biggest one-day gain since September.

The strength in soybeans was part of a broader rally spurred by renewed optimism about economic recovery that also lifted crude oil and equities.

August soybeans at the Chicago Board of Trade closed up 70-3/4 cents per bushel at $11.28-1/4 after rising as high as $11.34-1/4. Corn soared almost 4 percent and wheat nearly 1 percent.

August soybeans are in delivery status and trading without limits. The September contract rose the daily trading limit of 70 cents before closing up 65 cents.

The rally in soybeans was sparked by China making its biggest one-day purchase of U.S. soy in more than a year, the U.S. Agriculture Department reported on Thursday.

China bought 1.8 million tonnes for delivery in the new-crop (2009/10) marketing year, which begins on Sept. 1. The balance of 120,000 tonnes were sold for shipment this marketing year.

"China is the whole ball of wax. They have their shopping cart out and buying beans right and left," a trader said. "Now we don't know whether to buy old-crop or new-crop beans. Both of them are bullish."

U.S. soybean supplies already had been forecast to fall to the lowest level in 32 years, even before news of China's most recent purchase. U.S. soybean exports have already set a new record, weeks before the end of the marketing year.

"There were good export sales. China is still buying beans and bean supplies will be tight for the next 30 to 45 days," said Paul Haugens, vice president for Newedge USA.

USDA also said on Thursday, in its weekly export sales report, that total export sales of U.S. soybeans last week were 954,500 tonnes, more than the trade was expecting.

The persistent demand for soy by China, the world's largest soybean importer, further enhanced trade thinking that there would be no soy delivered against the Chicago Board of Trade August futures contract on Friday, first notice day for deliveries.

A lack of deliveries on futures contracts is an indication of huge demand for the cash commodity and a key bullish factor for futures markets. CBOT settlement prices

Last Change Pct 2008 YTD

Chg Close Pct Chg --------------------------------------------------------------- CBOT corn 3.3225 0.1150 3.6 4.07 -18.4 CBOT soy 11.2825 0.7075 6.7 9.7225 16.0 CBOT meal 355.80 17.30 5.1 300.5 18.4 CBOT soyoil 0.3493 0.0186 5.6 0.3329 4.9 CBOT wheat 5.1625 0.0475 0.9 6.1075 -15.5 CBOT rice 13.7450 -0.0250 -0.2 15.34 -10.4 EU wheat 135.00 1.25 0.9 137 -1.5 US crude 67.12 3.77 6.0 44.60 50.5 Dow Jones 9218 147 1.6 8776 5.0 Gold 935.50 6.50 0.7 878.20 6.5 Euro/dollar 1.4078 0.0045 0.3 1.3978 0.7 Dollar Index 79.2670 -0.3630 -0.5 81.1510 -2.3 Baltic Freight 3445 -54 -1.5 774 345 ---------------------------------------------------------------- In U.S. dollars, front-month contracts, except EU wheat, which is in euros. CBOT wheat, corn and soybeans per bushel, rice per hundredweight, soymeal per ton and soyoil per lb. (Additional reporting by Roberta Rampton in Washington, Christine Stebbins and Mark Weinraub in Chicago; Editing by Lisa Shumaker)