GRAINS-Corn lower as U.S. yield forecasts rise; soy, wheat climb

(New throughout; updates prices, adds analyst comments, changes dateline from SYDNEY/PARIS) CHICAGO, Sept 1 (Reuters) - U.S. corn futures fell on Friday on rising expectations of plentiful supplies from what should be a bumper Midwest harvest beginning later this month, analysts said. Soybean futures firmed, led by strength in soyoil, and wheat rose on technical buying ahead of a three-day U.S. holiday weekend. Markets will be closed on Monday for Labor Day. Chicago Board of Trade December corn settled down 2-1/2 cents at $3.55-1/4 per bushel. November soybeans ended up 4-1/4 cents at $9.49-1/2 per bushel and December wheat rose 4-1/4 cents to $4.38-3/4 a bushel. Corn came under pressure on rising U.S. corn yield forecasts from analytical and brokerage firms. Analytics firm Informa Economics raised its estimate of the U.S. 2017 corn yield to 169.2 bushels per acre (bpa), from 165.9 a month ago, sources said. Brokerage INTL FCStone on Thursday raised its estimate of the average U.S. corn yield to 166.9 bpa from 162.8 in its previous monthly report. The figures were below the USDA's August estimate of 169.5 bpa, but traders focused on the fact that both the private figures were up from a month ago. The USDA is scheduled to release updated crop estimates on Sept. 12. "The reality of the supply-side statistics is bearish, and that makes rallying difficult," said Terry Linn, analyst with Linn & Associates. A farmer survey conducted by commodity research and brokerage company Allendale Inc put the U.S. 2017 corn yield at 166.7 bpa. Soybean futures closed higher, with the benchmark November contract hitting a three-week top at $9.52 before settling at $9.49-1/2. Soybeans drew strength from advances in soyoil. Most-active December soyoil settled up 0.61 cent at 35.67 cents per pound, after reaching 35.76 cents, its highest level since January. Soyoil advanced after the U.S. Department of Agriculture said that domestic stocks of crude soyoil at the end of July fell to 1.628 billion pounds, down from 1.815 billion a month earlier. "You are getting support from the crush report showing stocks down by almost 200 million pounds month-on-month. That's a big drop," Linn said. Others cited expectations of increased demand from the soy-based biodiesel sector after the U.S. government in August slapped tariffs on imports of Argentine biodiesel. Wheat closed higher in largely technical trade. CBOT wheat rose against Minneapolis Grain Exchange spring wheat futures as traders exited long MGEX/short CBOT spread positions.

CBOT settlement prices:

Net Pct Volume

Last change change

CBOT wheat WZ7 438.75 4.25 1.0 61514 CBOT corn CZ7 355.25 -2.50 -0.7 174385 CBOT soybeans SX7 949.50 4.25 0.4 85495 CBOT soymeal SMZ7 298.80 -0.70 -0.2 41189 CBOT soyoil BOZ7 35.67 0.61 1.7 55430

NOTE: CBOT September wheat, December corn and November soybeans shown in cents per bushel, December soymeal in dollars per short ton and December soyoil in cents per lb.

(Reporting by Julie Ingwersen in Chicago; Additional reporting Evans and Matthew Lewis)