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GRAINS-Soybeans extend gains into 3rd session ahead of USDA forecast

SYDNEY, Nov 8 (Reuters) - U.S. soybeans edged higher for a third consecutive session on Wednesday, drawing support on expectations the U.S. Department of Agriculture will this week cut its forecast for oilseed production.

FUNDAMENTALS

* The most active soybean futures on the Chicago Board Of Trade were up 0.1 percent at $9.97-1/2 a bushel by 0159 GMT, having firmed 0.2 percent on Tuesday.

* The most active corn futures were down 0.2 percent at $3.47 a bushel, having closed 0.1 percent lower in the previous session.

* The most active wheat futures were down 0.12 percent at $4.26-3/4 a bushel, having closed 0.8 percent lower on Tuesday.

* Wheat prices are under pressure as the condition of the U.S. crop improves, easing concerns about the state of the grain.

* The market is expected to focus on the USDA supply and demand report on Thursday.

* Analysts expect the report to show higher corn yields, lower soybean yields and still-ample global supplies of grains and oilseeds.

* China will commit to buy more U.S. soybeans during President Donald Trump's visit to Beijing this week, a U.S. industry official said, underlining the importance of trade in farm goods even as tensions grow between the world's top two economies.

MARKET NEWS

* The dollar slipped broadly on Wednesday, hurt by a media report that suggested the implementation of a centerpiece corporate tax cut under discussion in U.S. tax reforms plans could be delayed.

* Oil markets were mixed on Wednesday, with international crude prices supported by expectations of strong Chinese demand data later in the day and tightening supplies, while U.S. crude slipped on the prospect of rising output.

* The Dow Jones Industrial Average eked out a fourth consecutive record high close on Tuesday, while the S&P 500 ended marginally lower after a disappointing profit forecast from Priceline and a drop in financials.

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 0159 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 426.75 -0.50 -0.12% +0.12% 412.14 44 CBOT corn 347.00 -0.75 -0.22% -0.29% 349.47 41 CBOT soy 997.00 1.00 +0.10% +0.30% 986.32 59 CBOT rice 11.52 $0.00 +0.00% -0.52% $12.07 31 WTI crude 57.08 -$0.12 -0.21% +7.68% $52.51 83

Currencies

Euro/dlr $1.160 $0.001 +0.09% -0.11% USD/AUD 0.7655 0.001 +0.14% -0.46%

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

(Reporting by Colin Packham; Editing by Biju Dwarakanath)