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 (Rewrites throughout, updates prices, changes byline, changes dateline from MANILA))
By Karl Plume
CHICAGO, March 28 (Reuters) - U.S. wheat futures surged more than 2 percent on Monday on technical buying and short covering amid concerns about dry weather in the southern Plains wheat belt.
Corn was narrowly mixed as spillover support from rallying wheat was offset by 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 hit a 3-1/2 month high but then erased nearly all gains 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 12-1/2 cents, or 2.7 percent, to $4.75-1/2 a bushel by 11:15 a.m. CDT (1715 GMT). Buying accelerated as the contract rose above its 50-day moving average around $4.69 a bushel.
May hard red winter wheat was up 11 cents, or 2.3 percent, at $4.82-3/4 a bushel after climbing above its 100-day moving average around $4.79. Continuación...