* GrainCorp underlying net profit falls 9 percent
* Restructuring costs hit statutory profits
* Says recent east coast rains welcome
* Committed to consortium seeking to buy CBH (Adds quotes on outlook, support for consortium looking to buy Australia's CBH)
By Colin Packham
SYDNEY, May 11 (Reuters) - Australia's GrainCorp Ltd GNC.AX reported a decline in first half underlying net profit on Wednesday, hurt mainly by a downturn in its oils business, but pointed to recent welcome rains across the east coast.
The country's largest listed bulk grain handler has been hit by several consecutive years of poor seasonal conditions, reducing harvests and damaging the bulk grain handler's storage and trading businesses.
Underlying net profit came in at A$32 million ($23.5 million), down from A$35 million a year earlier, while the company reaffirmed its full year forecast of $40 million to A$55 million.
"It has been a more challenging half for GrainCorp Oils, which has experienced lower crush margins due to high European demand for canola seed off a smaller crop resulting in tighter supply and higher procurement costs," said Mark Palmquist, managing director and CEO, GrainCorp.
Palmquist said recent rains across nearly all of Australia's east coast have boosted the outlook, although more rain will be needed in September.
The Australian Bureau of Meteorology said this week that climate indicators suggest the recent El Nino, the country's most severe weather event in nearly 20 years, is approaching an end. outlook for grain production could also be boosted if the dry weather is followed by a La Nina, which is associated with higher rainfall across Australia's east coast. The weather bureau pegs the chance of a La Nina at 50 percent.
Palmquist said GrainCorp is still supporting a consortium that is seeking to acquire and list its west coast grain handling rival Co-operative Bulk Handling Ltd (CBH).
CBH, Australia's largest wheat exporter, rejected the approach in March, but Palmquist said the consortium, which includes GrainCorp, would continue to lobby farmers to back a vote on the propsoal. are busy in the field seeding right now, so we are in a quiet period. But as they come out, [the bid] will get ramped up," he said.
"The goal is to get traction to get growers the chance to vote on the proposal."
CBH has expressed concerns that the deal, which analysts say could be worth up to A$3 billion ($2.2 billion) could eventually lead to its acquisition by GrainCorp.
GrainCorp's statutory net profit fell 33 percent to A$20.4 million, after it took an A$11.8 million hit in restructuring costs.
($1 = 1.3594 Australian dollars)