GRAINS-Soybeans hesitant as market assesses harvest progress, weather

* Soybeans little changed after hitting lowest since Oct. 12

* Soy, corn capped by U.S. harvest progress last week

* Weekend rain, cold forecast add a little caution

* Wheat flat near Friday's lows on big world supplies

(Updates with European trading, changes byline/dateline) PARIS/SINGAPORE, Oct 23 (Reuters) - Chicago soybeans traded little changed on Monday after dropping to their lowest in more than a week, as investors waited to see how fast the U.S. harvest had progressed before weekend showers, while assessing the prospects for rain in dry soy belts in Brazil. Corn futures edged upwards, after falling to near contract lows on Friday under pressure from expected harvest progress amid dry weather last week. The Chicago Board of Trade most-active soybean contract was down a quarter of a cent at $9.78-1/2 a bushel by 1149 GMT, off a session low of $9.76, which was its weakest since Oct. 12. Soyoil futures, however, remained firm after rallying on Friday on news the U.S. Environmental Protection Agency (EPA) was backing down on proposed changes to biofuel policy, which covers biodiesel made with soyoil. Corn added half a cent to $3.45 a bushel while wheat also inched up half a cent to $4.26-1/2. Soybeans and corn were pressured last week by dry conditions that favoured field work. "The U.S. soybean and corn harvest (is) now about 2/3 complete as harvest delays stay confined to the eastern Corn Belt," Thomson Reuters Agriculture Research analysts said in a daily note. Grain markets will get an update on corn and soybean harvesting, along with wheat sowing, in a weekly U.S. Department of Agriculture (USDA) report published after the market close on Monday. Rain that returned over the weekend was forecast to clear mid-week, although a cold spell towards the end of the week could bring light frosts. In Brazil, the world's largest soybean exporter, the planting pace was roughly in line with the five-year average but some producers were concerned about a lack of rains in key producing regions. "The dry regions (of Brazil) did get some substantial rain over the weekend," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. "Very high temperatures though mean the gains in soil moisture will have been limited. Weather forecasters expect more rain in the next couple of weeks that may allay the market's concerns. The market will push prices down if it gains more confidence that it will lift soil moisture." In China, the world's biggest importer of soybeans, prices fell to their lowest in 18 months on Monday amid concerns the government might lower its price or suspend state buying as farmers harvest the country's largest crop in six years, analysts said. News that Iraq bought 50,000 tonnes of U.S. hard wheat in a tender drew little reaction in a market that remains weighed down by large global supplies and intense export competition from Russia.

Prices at 1149 GMT

Last Chang Pct End Ytd Pct e Move 2016 Move CBOT wheat 426.50 0.50 0.12 408.00 4.53 CBOT corn 345.00 0.50 0.15 352.00 -1.99 CBOT soy 978.50 -0.25 -0.03 1004.00 -2.54 Paris wheat Dec 161.00 -0.25 -0.16 175.00 -8.00 Paris maize Nov 144.50 -0.75 -0.52 170.00 -15.00 Paris rape Nov 368.25 1.50 0.41 383.25 -3.91 WTI crude oil 52.09 0.25 0.48 53.72 -3.03 Euro/dlr 1.17 0.00 -0.40

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 Dale Hudson)