GRAINS--Wheat jumps as U.S. Plains dryness sparks short covering
* Dry southern Plains forecast after dry winter lifts wheat
* Corn capped by ample supply, China stockpile policy shift
* Soy slips from 3-1/2 month peak ahead of key USDA report (New throughout, updates prices and market activity to close)
By Karl Plume
CHICAGO, March 28 (Reuters) - U.S. wheat futures jumped nearly 2 percent on Monday on technical buying and short covering amid concerns about adverse weather in parts of the winter wheat belt that could damage developing crops.
Corn firmed slightly as spillover support from rallying wheat offset concerns about abundant global feed grain stocks and a sharp drop in corn futures prices in China, the world's No. 2 consumer of the grain.
Soybeans closed lower on profit taking from 3-1/2 month highs as traders adjusted positions ahead of a government report on spring planting intentions scheduled for release on Thursday.
Chicago Board of Trade May soft red winter wheat rose 8 cents, or 1.7 percent, to $4.71 a bushel. Buying accelerated as the contract rose above its 50-day moving average around $4.69 a bushel.
May hard red winter wheat gained 5-1/4 cents, or 1.1 percent, at $4.77 a bushel. Earlier, it climbed above its 100-day moving average around $4.79. Continuación...