(Updates with U.S. market activity, adds analyst comments, changes dateline previously TOKYO) By K.T. Arasu CHICAGO, Feb 4 (Reuters) - U.S. grains surged on Monday amid a wave of investment fund buying and a weak dollar fueling strong export demand, with wheat rising by the maximum allowed in a day and soyoil soaring to an all-time high. The buying by funds, estimated at around 16,000 contracts across all commodities listed at the Chicago Board of Trade, helped erase some uncertainty over what speculators might do amid the slowing U.S. economy. Fundamentals like concerns over excessive rains in Brazil's soybean growing regions, especially its largest soy state of Mato Grosso, bolstered buying interest in the markets. "Exports are strong for everything, it just won't back off," said Jerry Gidel, analyst for North America Risk Management Inc. "In beans the weather in Brazil is now getting to be a problem too," he added. Brazil, the world's No. 2 soybean exporter after the United States, typically dominates the global market from March as cheap, freshly harvested supplies enter the supply chain. U.S. farmers will only begin planting this year's crop in spring. Excessive rains could disrupt the Brazilian harvest and possibly delay the movement of supplies to ports. This could shift some of the export demand to the United States for supplies held over from last year's harvest. Traders said funds bought an estimated 2,000 contracts of wheat, 4,000 contracts each of corn and soybeans and 3,000 contracts each of soyoil and soymeal. CBOT March corn ended 10 cents higher at $5.10-1/2 a bushel. March soybeans rose 38-3/4 cents to $13.26 a bushel. March soyoil rose 1.64 cents to 55.76 a lb, while the December hit a record high 57.77 cents. CBOT March soft red winter wheat rose the 30-cent daily trading limit to end at $9.73 a bushel. Minneapolis Grain Exchange March hard red spring wheat rose the 30-cent limit to $14.33, the highest for any U.S. wheat contract. Kansas City Board of Trade March hard red winter wheat rose the 30-cent limit to $10.20-1/4. MGE spring wheat futures, once again, led the Chicago and Kansas City markets higher amid strong export demand for the wheat prized by millers and bakers for its high protein. "The Minneapolis contract showed a lot of strength and is ahead of beans, trying to keep from losing something like a million acres to soybeans this year," said Tim Hannagan, analyst for Alaron Trading. He was referring to what is dubbed by traders as the "fight for acres" where prices of corn, soy and wheat have to compete with each other be high enough to attract farmers to grow enough of the commodity this year. Traders were waiting for supply/demand data this Friday from the U.S. Agriculture Department. "I think a lot of people are expecting tight stocks of wheat and corn on Friday's report. People want to be long wheat ahead of this report Friday," Tim Hannagan, analyst for Alaron Trading, said. (Additional reporting by Chikafumi Hodo in Tokyo, editing by Matthew Lewis)
