GRAINS-Corn to 3-1/2-month high on harsh weather

* Cold snap harms U.S. corn crop

* Analysts say 100-200 mln bushels corn lost

* Wet, chilly weather slowing U.S. harvest

* Weak dollar, money flow boosting grains/soy

* China says guarding grain, soy stocks (Recasts to include close of U.S. trading, fresh analyst quotes)

CHICAGO, Oct 12 - Harsh weather in the United States that harmed the corn crop, trimming production potential, boosted U.S. corn futures 5 percent to a 3-1/2-month peak on Monday.

Soybeans rallied more than 3.5 percent, moving above $10 per bushel for the first time in 6 weeks, and closed strong -- though 1 cent under $10 -- as that crop is also struggling through cold and wet weather.

Wheat rose 5 percent to a 2-month high in step with the rally in corn and soybeans.

Support for the three commodities also stemmed from a falling dollar and fund buying on speculation of a turn to global inflation, now that the recession appears to have ended or is nearing an end.

"It's weather and money flow ... asset buying. We need some clear weather to get harvest going," said Paul Haugens, vice president for Newedge USA.

U.S. corn for December delivery ended up 19 cents at $3.81-1/4 per bushel. November delivery soy was up 35 cents at $9.99 and wheat for December delivery was up 26-1/4 at $4.94-1/4.

"It's all off the weather and the dollar. Funds are buying and you can't fight the fund money," said Joe Bedore, CBOT floor manager for trade house FC Stone.

Traders said a weekend cold snap may have trimmed production potential for the 2009 crops, while wet and chilly weather would hamper harvest this week.

"We may have lost, we think, 150 (million) to 200 million bushels of corn. I don't think you've lost many beans," said Dan Basse, president of AgResource Co.

The U.S. Department of Agriculture is estimating a record soybean crop and the second biggest ever corn crop, and operators say the market will be weighing these big numbers against the developing weather picture.

Corn and soybean crops are lagging behind normal maturity schedules due to late seedings and a cool summer, leaving each crop vulnerable to harm by harsh weather during harvest.

A forecaster said on Monday that freezing temperatures likely ended the growing season for corn and soybeans in the western U.S. Midwest over the weekend, while rain expected this week should slow the harvest of mature crops.

"You basically had two solid mornings of hard freeze conditions in the heart of the western Corn Belt," said Mike Palmerino, a meteorologist for DTN Meteorlogix.

The cold likely damaged immature corn and soybeans, although most crops were at or near maturity in the region. But farmers will struggle to gather crops this week.

"I would be surprised if producers are jumping right back in the fields here," Palmerino said. "This is going to be a drawn-out harvest."

Weather concerns were central to the rally in grains and soy, but demand for commodities from investors such as hedge and index funds also was cited as a key bullish market factor.

"It's new money, it's the weaker dollar, it's cold temperatures," Basse said.

The dollar fell on Monday as investors positioned ahead of U.S. corporate earnings reports this week.

A weaker dollar is bullish for U.S. commodities because buyers using currencies such as the yen or euro can buy more of a U.S. product with their money.

Basse said there also was support for wheat, corn and soybeans from news that China is talking about its reserve policy, where it will not be selling corn, soybeans or wheat.

China pledged to stockpile new corn and soybean crops to ensure a supply at the risk of inflating imports for a second year running.

China is the world's biggest importer of soybeans and was by far the chief purchaser of U.S. soybeans during the 2008/09 marketing year that ended on Aug. 31. CBOT settlement prices

Last Change Pct 2008 YTD

Chg Close Pct Chg ----------------------------------------------------------- CBOT corn 3.8125 0.1900 5.2 4.07 -6.3 CBOT soy 9.9900 0.3500 3.6 9.7225 2.8 CBOT meal 322.80 12.50 4.0 300.5 7.4 CBOT soyoil 0.3630 0.0139 4.0 0.3329 9.0 CBOT wheat 4.9425 0.2625 5.6 6.1075 -19.1 CBOT rice 13.7950 0.3950 3.0 15.34 -10.1 EU wheat 127.75 1.75 1.4 137 -6.8 US crude 73.12 1.35 1.9 44.60 63.9 Dow Jones 9869 4 0.0 8776 12.4 Gold 1055.50 7.25 0.7 878.20 20.2 Euro/dollar 1.4776 0.0051 0.3 1.3978 5.7 Dollar Index 76.1800 -0.2510 -0.3 81.1510 -6.1 Baltic Freight 2696 1 0.0 774 248 ---------------------------------------------------------------- *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.