GRAINS-Corn/wheat up 1 pct as funds buy, dlr falls

* Funds buying grains/commodities

* Weak dollar supporting grain market

* Goldman Sachs bullish on commodities

(Updates to include U.S. trading session, fresh analyst quotes, changes dateline from LONDON/SINGAPORE)

By Sam Nelson

CHICAGO, Nov 11 (Reuters) - U.S. corn and wheat futures rose 1 percent on Wednesday on fund buying of grains as the dollar fell and while crude oil, gold and equities gained.

Soybean futures also rose as new money kept piling into a basket of commodities ranging from crude oil and gold to wheat and cotton.

"It's simply money flow, you can't explain it any other way, money is coming into commodities, including grains," said Joe Bedore, CBOT floor manager for trade house FC Stone.

The dollar hit a 15-month low against a currency basket on Wednesday after Federal Reserve officials said any recovery in the U.S. economy would be erratic, bolstering the view that interest rates would stay low.

A falling dollar makes U.S. commodities a better buy for importers using such currencies as the euro and yen.

Wheat, corn and soybeans kept marching higher despite plentiful supplies of each as shown in the U.S. Department of Agriculture's (USDA) November crop report that was released on Tuesday.

"There are two major bullish factors here. Funds are buying grains and the dollar is falling, the fundamentalists who sold the market because of big crops are gone...no one wants to sell with this kind of money coming in," Bedore said.

At 10:27 a.m. CST (1627 GMT), December delivery wheat was up 6 cents per bushel at $5.29, corn for December was up 2-1/2 at $3.97 and November delivery soy was up 3-3/4 at $9.65-1/4.

"People are still looking at crude oil, they are looking at dollar weakness. They are also looking at fund buying, particularly of corn," one European dealer said.

Traders said a report this week from Goldman Sachs that remained upbeat on commodities and forecast corn prices 12 months out at $4.50 per bushel, also boosted the corn market.

Also "there was a report yesterday that a fund was going to buy 62,000 corn contracts in January, 20,000 wheat and 15,000 to 20,000 beans, no one wants to stand in the way of that buying, so we're going up," Bedore said.

Improved corn and soybean harvesting weather in the United States, normally a bearish market factor, was being discounted by the market in favor of the bullish impact of fresh speculative buying. Prices at 10:31 a.m. CST (1631 GMT)

Pct 2008 YTD

Last Change Chg Close Pct Chg --------------------------------------------------------------- CBOT corn Cc1> 3.9750 0.0300 0.8 4.07 -2.3 CBOT soy Sc1> 9.6600 0.0450 0.5 9.7225 -0.6 CBOT meal SMc1> 289.90 1.70 0.6 300.5 -3.5 CBOT soyoil BOc1> 0.3814 0.0058 1.5 0.3329 14.6 CBOT wheat Wc1> 5.2975 0.0675 1.3 6.1075 -13.3 CBOT rice RRc2> no trade EU wheat BL2F0> 131.25 1.75 1.4 137 -4.2 US crude CLc1> 79.19 0.14 0.2 44.60 77.6 Dow Jones .DJI> 10277 30 0.3 8776 17.1 Gold XAU=> 1113.30 8.00 0.7 878.20 26.8 Euro/dollar EUR=> 1.4976 -0.0009 -0.1 1.3978 7.1 Dollar Index .DXY> 75.1200 0.0990 0.1 81.1510 -7.4 Baltic Freight .BADI> 3748 133 3.7 774 384 ---------------------------------------------------------------- *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. (Reporting by Sam Nelson; additional reporting by Nigel Hunt in London and Naveen Thukral in Singapore; Editing by Marguerita Choy)