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GRAINS-Soybeans edge higher as market expects USDA to trim output forecast

SYDNEY, Nov 7 (Reuters) - U.S. soybeans edged higher on Tuesday, extending gains into a second consecutive session, as expectations the U.S. Department of Agriculture will trim its production forecast provided support to prices.

FUNDAMENTALS

* The most active soybeans futures on the Chicago Board Of Trade were up 0.2 percent to $9.96-1/4 a bushel by 0132 GMT, having firmed 0.7 percent on Monday after earlier hitting a low of $9.85 a bushel - the lowest since Nov. 1.

* The most active corn futures were up 0.1 percent to $3.47-1/2 a bushel after closing down 0.1 percent in the previous session.

* The most active wheat futures were down 0.1 percent at $4.30-1/4 a bushel, having closed up 1.2 percent on Monday.

* The U.S. Agriculture Department's (USDA) monthly crop supply and demand report is scheduled for release on Thursday. Analysts, on average, expect the government to raise its U.S. corn yield forecast and trim its soybean yield outlook.

* Brazilian soybean planting has been lagging the normal pace because of heavy early season rains in central and southern areas and dry conditions in top soy state Mato Grosso.

MARKET NEWS

* The dollar sagged on Tuesday, knocked away from an eight-month highs versus the yen as Treasury yields slipped on uncertainty over whether the U.S. Republicans can pass their tax bill in a timely manner.

* U.S. oil prices edged lower on Tuesday after posting the biggest gains in six weeks a day earlier, buoyed by moves by Saudi Arabia's crown prince to tighten his grip on power and a drop in U.S. drilling rigs.

* U.S. stocks climbed to record highs on Monday, helped by optimism about merger activity and as investors bet that a Republican plan to cut corporate taxes would bolster earnings.

DATA/EVENT AHEAD (GMT)

0700 Germany Industrial output Sep 0745 France Budget balance Sep 1000 Euro zone Retail sales Sep

1930 Federal Reserve Chair Janet Yellen gives acceptance remarks at Washington event

Grains prices at 0132 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 430.25 -0.50 -0.12% +1.06% 435.38 51 CBOT corn 347.50 -0.50 -0.14% -0.22% 349.69 42 CBOT soy 996.25 2.25 +0.23% +0.96% 985.62 57 CBOT rice 11.49 -$0.03 -0.26% -0.73% $12.07 31 WTI crude 57.22 -$0.13 -0.23% +2.84% $52.32 85

Currencies

Euro/dlr $1.160 $0.000 -0.04% -0.03% USD/AUD 0.7688 0.000 -0.03% +0.50%

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

(Reporting by Colin Packham; Editing by Kenneth Maxwell)