GRAINS-Corn steadies after slide on higher U.S. yield; soybeans firm

Gus Trompiz and Colin Packham

* Corn recovers some of Thursday's 3.6% drop after USDA data

* USDA yield increase, export cut adds to hefty corn stocks

* Soybeans at new 3-month top on USDA supply cut, China hopes

* Wheat ticks higher after sharp fall on USDA report

(Updates with European trading, changes byline/dateline) PARIS/SYDNEY, Oct 11 (Reuters) - Chicago corn futures rose on Friday as hopes of progress in U.S.-Chinese talks and risks of cold weather damage to crops encouraged prices to steady after a day-earlier slide sparked by a higher than expected government forecast of harvest yields. Soybeans were also higher as optimism surrounding the high-level trade talks between Washington and Beijing added to support from lower than anticipated soybean supply projections in the U.S. Department of Agriculture's (USDA) monthly crop report on Thursday. Wheat ticked up, steadying like corn after a sharp fall in response to the USDA data that included bigger than expected forecasts of U.S. and world wheat stocks. The most-active corn futures on the Chicago Board Of Trade were up 0.9% at $3.83-1/2 a bushel by 1216 GMT. The futures ended down 3.6% on Thursday after touching a 10-day low at $3.78-1/4. The USDA, in its monthly supply and demand report, pegged the 2019 U.S. corn yield at 168.4 bushels per acre (bpa), compared with 168.2 bpa in September and an average trade estimate of 167.5 bpa. It projected 2019/20 U.S. corn ending stocks above average market forecasts, also reflecting a downgrade to expected U.S. exports. "Grain markets are higher overnight on trade deal optimism after pulling back sharply on higher than expected corn and wheat (USDA) numbers," brokerage Allendale said in a note. "Traders will continue to focus on snow maps, freezing temperatures and progress on U.S.China trade talks." A Chinese state newspaper said on Friday that a "partial" trade deal would benefit China and the United States, reflecting Beijing's aim of reducing trade tensions before more U.S. tariffs kick in. Traders were also monitoring a wintry storm moving across some northerly U.S. crop belts, with the risk of crops being knocked over by snowfall or damaged by frosts. CBOT soybean futures were up 0.7% at $9.30-1/4 a bushel, after earlier touching a latest high since July 15 at $9.34-1/2. CBOT were up 0.4% at $4.94-3/4 a bushel. Soybeans, the largest U.S. crop export to China, have been supported by purchases of U.S. soybeans by China in the run-up to the latest round of trade negotiations, including a 398,000 tonne sale reported by the USDA on Thursday. The USDA report also lent support to soybean prices, as the agency reduced its soybean yield estimate to 46.9 bpa, below an average analyst estimate of 47.3 bpa. The USDA also lowered its estimate for U.S. soybean ending stocks by more than expected on average by analysts.

Prices at 1216 GMT

Last Change Pct End Ytd PctMove 2018 MoveCBOT wheat 494.75 1.75 0.35 503.25 -1.69CBOT corn 383.50 3.25 0.85 375.00 2.27CBOT soy 930.25 6.75 0.73 895.00 3.94Paris wheat Dec 177.75 0.75 0.42 191.25 -7.06Paris maize Nov 164.00 0.50 0.31 175.25 -6.42Paris rape Nov 383.50 0.00 0.00 364.00 5.36WTI crude oil 54.33 0.78 1.46 45.41 19.64Euro/dlr 1.10 0.00 0.34 1.1469 -3.73

Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne

(Reporting by Gus Trompiz in Paris and Colin Packham in Sydney; Editing by Aditya Soni and Elaine Hardcastle)