GRAINS-Soybeans up for 3rd session, wheat rises after 6-day decline

* Soybeans hit highest since Oct. 16, up for 3rd day

* Expectations of lower U.S. crop yields underpin soybeans

* Wheat rises from losses, prices capped by ample supplies

(Adds details, quotes) Nov 2 (Reuters) - Chicago soybeans rose for a third consecutive session on Thursday with the market hitting its highest in more than two weeks as expectations of lower U.S. yields supported the market. Wheat bounced back after declining for the last six sessions, emerging from the squeeze of plentiful global supplies. The Chicago Board Of Trade most-active soybean contract rose 0.7 percent to $9.97-3/4 a bushel by 0344 GMT, after climbing earlier in the session to its highest since Oct. 16 at $9.98 a bushel. Wheat gained 0.4 percent to $4.19-1/2 a bushel, having given up 4.6 percent in the previous six sessions. Corn rose 0.1 percent to $3.48-1/2 a bushel, having gained 0.7 percent on Wednesday. "Soybeans are holding very well as the USDA (U.S. Department of Agriculture) is expected to reduce yield estimate," said one India-based agricultural commodities analyst. "But U.S. exports have a lot to catch up and Brazilian weather has improved and we do not see any major issues with the Brazilian crop." The USDA last month lowered its forecast for the U.S. 2017 soybean yield to 49.5 bushels per acre. Some expect the government to trim its estimate again in its next monthly supply and demand reports on Nov. 9. But the brokerage INTL FCStone kept its U.S. 2017 soybean yield forecast at 49.9 bushels per acre (bpa), unchanged from its previous monthly estimate. The firm raised its U.S. corn yield estimate to 173.7 bpa, from 169.2 bpa last month.

Elsewhere, Ukrainian farmers have sown 5.9 million hectares of winter wheat for the 2018 harvest, or 96 percent of the expected area of 6.15 million hectares, the agriculture ministry said on Wednesday. Ukraine plans to sow 7.2 million hectares of various winter grains for next year's harvest, including wheat, 926,000 hectares of winter barley and 161,000 hectares of rye, the ministry said in a statement. In China, authorities will increase state purchases of grains as heavy rains in southern China affect wheat and corn output, the State Administration of Grain and the state planner said. The state planner and grains regulator urged the local reserve centre to expand storage capacity to encourage state purchases of grains, including renting warehouses from local companies as temporary storages facilities. Commodity funds were net buyers of CBOT corn, soybean, soymeal and soyoil futures contracts on Wednesday and net even in wheat, traders said.

Grains prices at 0344 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 419.50 1.50 +0.36% +0.24% 437.52 28 CBOT corn 348.50 0.25 +0.07% -3.60% 362.23 44 CBOT soy 997.75 6.50 +0.66% +2.46% 974.75 62 CBOT rice 11.47 -$0.04 -0.30% -1.08% $12.16 24 WTI crude 54.30 $0.00 +0.00% +45.73% $38.21 74


Euro/dlr $1.165 $0.004 +0.31% +0.08% USD/AUD 0.7714 0.004 +0.51% +0.77%

Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential

(Reporting by Naveen Thukral; Editing by Kenneth Maxwell)