GRAINS-Soybeans rise for 3rd day to one-month high on demand hopes

* Expectations of Chinese demand support soybean, corn prices

* U.S. plans to buy U.S. farm goods as coronavirus hits economy

* Gains capped ahead of U.S. supply-demand report due on Tuesday (Add details on U.S. plans to buy agriculture produce, rains in Russia, speculators positioning, quote in paragraphs 3-4; updates prices)

By Naveen Thukral

SINGAPORE, May 11 (Reuters) - Chicago soybean futures rose for a third consecutive session to hit a one-month high on Monday, while corn prices gained on expectations of higher demand from top buyer China.

Wheat rose after closing marginally lower on Friday.

"Soybeans and corn prices are supported by expectations of more Chinese buying after talks between Washington and Beijing," said Ole Houe, director of advisory services at brokerage IKON Commodities.

"The U.S. Department of Agriculture (USDA) will issue its first estimates for 2020/21 demand and supply tomorrow, so the bullish tone is unlikely to last as they will have to deal with the demand destruction."

The USDA's report is expected to show stocks of wheat, corn and soybeans remain ample.

The most-active soybean contract on the Chicago Board Of Trade added 0.7% to $8.56 a bushel by 0232 GMT, near the session high of $8.58-1/2 a bushel - the highest since April 13.

Corn rose 0.8% to $3.21-3/4 a bushel, while wheat was 0.5% higher at $5.24-1/2 a bushel.

China may increase agricultural buying to fulfil commitments laid out in January under the Phase 1 trade deal with the United States.

Top U.S. and Chinese trade representatives discussed the Phase 1 trade deal on Thursday evening, with China saying it would work to meet agreed-upon purchases, including agricultural goods like corn and soybeans.

The U.S. Department of Agriculture said on Friday that private exporters reported the sale of another 120,000 tonnes of soybeans to unknown destinations for delivery in the 2019/20 marketing year.

President Donald Trump on Saturday said the United States will next week begin purchasing $3 billion worth of dairy, meat and produce from farmers as unemployment soars and people are forced to food lines.

In the wheat market, the focus is on Russian crop as the world's biggest exporter gears up for harvest in the coming months.

SovEcon, one of the leading agriculture consultancies in Moscow, said rains that arrived in some of the key grain-growing regions were too late to fix some of the damage wrought by dry weather.

Large speculators increased their net short position in Chicago Board of Trade corn futures in the week to May 5, regulatory data released on Friday showed.

The Commodity Futures Trading Commission's weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and trimmed their net short position in soybeans. (Reporting by Naveen Thukral; Editing by Devika Syamnath)

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