GRAINS-Nearby soy futures surge on tight supplies

* CBOT September soybeans rise 2.2 percent

* Concerns about tight supplies spark soy rally

* Corn, wheat bounce from lows as stocks, oil turn higher (Recasts, updates with closing CBOT prices, new quote)

CHICAGO, Aug 27 - Nearby soybean futures rose 2.2 percent at the Chicago Board of Trade on Thursday due to tight stocks in the country and good demand on the export market for U.S. supplies, traders said.

But deferred soybean futures contracts fell amid prospects for a large U.S. harvest easing the supply crunch this fall.

Strength in the cash market sparked the rally in the nearby soybean contract. Grain dealers raised their spot soybean basis bids at processors and elevators around the U.S. Midwest early on Thursday.

"Cash bids firmed quite a lot. There is not much of the old crop left and people who are buying soy are paying a premium," said Ben Barber, commodities broker at Bell Commodities in Melbourne.

CBOT September soybean futures rose 23-3/4 cents to close at $11.14-1/4 a bushel on Thursday. The new-crop November contract slipped 1/2 cent to settle at $9.96 a bushel.

USDA said export sales of U.S. soybeans last week totaled 2,054,200 tonnes (old and new crop), above estimates for 800,000 to 1,250,000 tonnes.

Traders also were monitoring the call for a seven-day farmer strike in Argentina, though it was unlikely to have any immediate impact on global soybean trade as the bulk of the recently harvested crop had been shipped.

Farm leaders have called for a week-long commercial strike that would halt grain and beef sales in protest at government farm policy.

The country is the world's third-largest exporter of soybeans and the biggest supplier of soyoil and soymeal, as well as the second-largest exporter of corn, after the United States.

"Last time they had a strike, it was very bullish for the prices," said Barber. "At the moment they are just talking about one week, which is not going to have a huge impact, but, if it escalates, yes, definitely."

Strength in soy futures also spilled over into the corn and wheat markets, which bounced from lows as the soybean rally picked up steam.

"The old crop is very strong and it is just dragging the whole board up with it," a CBOT trader said.

A turnaround in U.S. stock markets and rebounding crude oil futures also lent strength to corn and wheat.

CBOT September corn rose 2-1/2 cents to close at $3.23 a bushel while CBOT September wheat fell 3-3/4 cents to $4.75 a bushel. Wheat futures had traded more than 2 percent lower during the session.

Most traders were still bearish about wheat prices due to fears of plentiful global supplies outstripping demand.

"I still think it is ... concerns about the pace of demand," said Shawn McCambridge, analyst for Prudential Bache Commodities. "We still have plenty of wheat in the United States, and also world markets, and that continues to weigh on our prices here today."

Large stocks of wheat around the world were providing stiff competition for U.S. supplies on the export market.

The U.S. Agriculture Department said export sales of U.S. wheat last week totaled 652,700 tonnes (old crop), above estimates for 350,000 to 450,000 tonnes. But wheat exports were running well below levels reached in 2008. CBOT settlement prices

Last Change Pct 2008 YTD

Chg Close Pct Chg --------------------------------------------------------------- CBOT corn 3.2300 0.0250 0.8 4.07 -20.6 CBOT soy 11.1425 0.2375 2.2 9.7225 14.6 CBOT meal 379.00 16.00 4.4 300.5 26.1 CBOT soyoil 0.3621 -0.0025 -0.7 0.3329 8.8 CBOT wheat 4.7500 -0.0375 -0.8 6.1075 -22.2 CBOT rice 13.1500 0.0000 0.0 15.34 -14.3 EU wheat 129.50 0.5 0.4 137 -5.5 US crude 72.76 1.33 1.9 44.60 63.1 Dow Jones 9573 30 0.3 8776 9.1 Gold 948.65 4.55 0.5 878.20 8.0 Euro/dollar 1.4356 0.0113 0.8 1.3978 2.7 Dollar Index 78.0680 -0.5930 -0.8 81.1510 -3.8 Baltic Freight 2425 -2 -0.1 774 213 --------------------------------------------------------------

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.