* Corn up after biggest one-day loss in a month
* Soybeans recoup losses after four days of decline
* Market digests rise in USDA corn, soy yield outlook
* Wheat extends gains, focus on lower Australian supply
(Updates with European trading, changes byline/dateline) PARIS/SINGAPORE, Sept 13 (Reuters) - Chicago corn futures edged higher on Wednesday as the market caught its breath after the biggest one-day fall in almost a month following an unexpected increase in a U.S. government forecast for corn yields. Soybeans also rose slightly to recoup some of their losses from Tuesday when the U.S. Department of Agriculture (USDA) also surprised investors by raising its yield outlook for this year's U.S. soybean harvest. Wheat extended gains from the previous session, with the USDA's cut to expected supplies in Australia helping shift attention away from ample global inventories. The most-active corn contract on the Chicago Board of Trade was up 0.4 percent at $3.52-3/4 a bushel by 1125 GMT. It ended Tuesday's session down 1.7 percent, the biggest one-day drop since Aug. 15, after hitting its lowest since Aug. 31 at $3.45-1/2 earlier in the day following the USDA's monthly supply and demand report. The USDA raised its estimate of the average U.S. 2017 corn yield to 169.9 bushels per acre (bpa) from its August estimate of 169.5 bpa, above the 168.2 bpa expected by analysts.
"The increase in corn yields was a total surprise and it is bearish news for the market," said an India-based agricultural commodities analyst. "The weather has not been as good as last year but crops seem to have been resilient." The agency increased its soybean yield estimate to 49.9 bpa, from 49.4 bpa in August, topping the range of expectations. Analysts had been expecting the USDA to trim its corn and soybean estimates to take into account mixed growing conditions this summer, notably dryness in part of the Midwest grain belt. "With this report now behind us, the market focus will soon be turning towards real U.S. yield reports over estimates," Rabobank analysts said in a note. "However, given relatively inconsistent conditions across states ... confidence in domestic production, particularly these somewhat optimistic estimates, could take some time." CBOT soybeans rose 0.5 percent to $9.55-1/2 a bushel, having closed down 1 percent on Tuesday to record its fourth straight daily loss. Along with doubts about the prospect for U.S. yields, the soybean market has been underpinned by a string of export sales.
Wheat rose 0.7 percent to $4.45-1/4 a bushel after ending Tuesday's session 1.7 percent higher. The USDA lowered its outlook for Australian supplies, which contributed to a decrease in forecast world stocks of the cereal, although a record harvest in Russia is expected to help keep supplies at a high level. Traders said wheat also benefitted on Tuesday from spread deals against falling corn prices.
Prices at 1125 GMT
Last Change Pct End Ytd Pct Move 2016 Move CBOT wheat 445.25 3.25 0.74 408.00 9.13 CBOT corn 352.75 1.25 0.36 352.00 0.21 CBOT soy 955.50 5.00 0.53 1004.00 -4.83 Paris wheat Dec 161.75 2.25 1.41 175.00 -7.57 Paris maize Nov 157.00 0.50 0.32 170.00 -7.65 Paris rape Nov 363.75 0.25 0.07 383.25 -5.09 WTI crude oil 48.65 0.42 0.87 53.72 -9.44 Euro/dlr 1.20 0.00 0.13
Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne
(Reporting by Naveen Thukral in Singapore and Gus Trompiz in Paris; editing by David Clarke)