GRAINS-US soybeans at 3-week top on Midwest weather outlook
* November soybeans climb to highest since July 25
* Corn ticks up after Wednesday's strong rally
* Concerns over hot, dry weather underpin corn, soy
(Adds quotes, updates prices)
SINGAPORE/LONDON, Aug 15 (Reuters) - U.S. soybean futures rose to a three-week high on Thursday as forecasts of hot and dry weather in parts of the Midwest added to concerns over crop yields.
Corn futures on the Chicago Board of Trade also advanced on weather concerns while wheat gained on spillover support despite an improving outlook for crops in the European Union.
"The key for beans is that the USDA cut yield prospects on Monday and the situation today is that there is nothing in the near-term weather forecasts to reverse the concern over yields," said Brett Cooper, senior markets manager at INTL FCStone Australia.
"We are months away from getting a real handle on final yields in beans and it is obviously going to be dependent on the weather."
CBOT November soybeans rose 0.5 percent to $12.44-3/4 a bushel by 1138 GMT after peaking at $12.53-1/2, the highest level for the contract since July 25.
CBOT corn prices also climbed with December up 0.4 percent at $4.57 a bushel.
The latest weather forecasts for the U.S. crop belt suggest drier conditions over the coming weeks which could begin trimming yield potential.
DRY, WARM WEATHER
Drier weather is expected for the Midwest through the end of August and warmer temperatures were slated to arrive beginning next week, said Joel Widenor, meteorologist for Commodity Weather Group.
In its monthly supply-demand report, the U.S. Department of Agriculture (USDA) estimated the soybean crop at 3.255 billion bushels, up 8 percent from last year, but more than 2 percent below trade expectations.
The USDA, in its first field-based survey of the crop, put the average yield at 42.6 bushels per acre (bpa), against 44.5 bpa projected in July.
Wheat prices edged up with CBOT September rising 0.4 percent to $6.32-3/4 a bushel and November wheat in Paris up 0.7 percent at 183.25 euros a tonne.
Dealers noted harvest conditions in the European Union remained generally favourable.
Analysts Strategie Grains on Thursday raised their forecast for this year's soft wheat crop in the 28-member EU to 134.2 million tonnes, up 800,000 tonnes from last month's estimate and now up 7 percent on 2012.
"Overall harvesting is progressing well in mostly good weather and the quality and volumes look decent," one German trader said.
(Additional reporting by Michael Hogan in Hamburg; editing by Keiron Henderson)