GRAINS-Wheat rises for 3rd session on U.S. dryness; soybeans rebound

* Wheat gains more ground as dry weather seen curbing U.S. yields

* Drought in Australia but crop has long way to go, corn rises

(Adds details, quotes) SINGAPORE, May 17 (Reuters) - Chicago wheat futures rose for a third consecutive session on Thursday with prices underpinned States and Australia. Soybeans firmed with the market taking a breather after Wednesday's deep losses which were triggered by fears about Chinese demand for U.S. supplies amid a trade war between the two nations. The Chicago Board Of Trade most-active wheat contract gained 0.8 percent to $4.98 a bushel by 0311 GMT.ff Soybeans were up 0.5 percent at 10.04-1/2 a bushel after dropping to their lowest since April 4 at $9.98 a bushel earlier in the session. Corn added 0.3 percent to $4.00-1/4 a bushel, having closed down 0.8 percent in the previous session. "There is some support for the wheat market at current levels because of a drought in the U.S. southern Plains. The USDA is showing some improvement in crop rating but there will be yield losses," said one India-based agricultural commodities analyst. "There is drought in Australia but crop there has a long way to go. Overall, we don't see a major rally in wheat prices as the market is very well supplied." Australian farmers are planting wheat in some of the driest soils in years, following on from a severe drought that cut 2017/18 output in the world's fourth-largest exporter to the lowest in a decade. But rains later this month or early June could prevent a decline in yields. For soybeans, the market is focused on the outcome of trade talks between the United States and China. Chinese demand for U.S. shipments has taken a hit since Beijing proposed import duties last month. Brazilian farmers looking to expand soybean acreage next season to meet strong Chinese appetite will have to weigh rising land costs in farm country, growers and analysts said on a crop tour of fields in Mato Grosso. Producers in the country's No.1 grain state may prefer to spend the returns from recent bumper crops on boosting the productivity of their existing farms, they said, for example by buying better equipment. Commodity funds were net sellers of CBOT soybean, corn, wheat, soymeal and soyoil contracts on Wednesday, traders said.

Grains prices at 0311 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 498.00 3.75 +0.76% +0.91% 499.63 46 CBOT corn 400.25 1.00 +0.25% -0.50% 397.78 60 CBOT soy 1004.50 4.75 +0.48% -1.40% 1038.82 41 CBOT rice 12.55 -$0.01 -0.04% +0.48% $12.98 49 WTI crude 71.76 $0.27 +0.38% +0.63% $68.37 71

Currencies

Euro/dlr $1.183 $0.002 +0.19% -0.06% USD/AUD 0.7544 0.003 +0.40% +0.98%

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

(Reporting by Naveen Thukral; Editing by Subhranshu Sahu)