GRAINS-Soybeans hold near 3-week high on expectations of lower US yields

CANBERRA, Oct 9 (Reuters) - Chicago soybean futures held near three-week highs on Thursday amid expectations that U.S. harvest yields will be below the most recent government forecast and hopes that China will revive purchases from the United States.

Corn futures rose slightly, with traders expecting a cut in yield forecast for the U.S. crop, while wheat recovered some ground after slipping towards five-year lows earlier in the week.

FUNDAMENTALS

* The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was unchanged at $10.29-1/2 a bushel by 0042 GMT. Earlier in the session, it touched $10.30, the highest level since September 19 first touched on Wednesday.

* CBOT corn Cv1 was up 0.2% at $4.22-3/4 a bushel and wheat Wv1 rose 0.5% to $5.10 a bushel.

* All three markets are well supplied and prices have fallen sharply from highs reached in 2022.

* The U.S. dollar slipped from a two-month high in the previous session. A weaker dollar makes U.S. crops more affordable for importers and can boost demand. .DXY USD/

* Analysts polled by Reuters expect the latest soybean and corn yield estimates from the U.S. Department of Agriculture (USDA) to be reduced when the agency resumes reporting data.

* The USDA's monthly supply and demand data was expected on Thursday, but will not be issued due to the government shutdown.

* U.S. farmers are in the middle of harvesting this year's soy and corn crops.

* Farmers are waiting for details of a U.S. farm aid package that could help growers struggling with a lack of China purchases.

* China has shunned U.S. beans amid a trade war with Donald Trump's administration. Trump said last week he would raise the issue with Chinese President Xi Jinping at a meeting around the end of October.

* Giving some support to soybeans is the threat of strikes by oilseed workers in Argentina, a major soy exporter.

* However, ample supply continues to weigh. Soybean exports from top producer Brazil are expected to reach 102.2 million metric tons through end-October, surpassing annual volumes for the whole of 2024 and 2023, grain exporter group Anec data showed.

* In wheat markets, Argentina's Rosario grains exchange raised its estimate for this season's harvest to 23 million tons from 20 million tons, suggesting that the market will remain abundantly supplied.

MARKETS NEWS

* Major stock indexes rose on Wednesday, with U.S. and European indexes hitting record highs, while gold extended its recent rally above $4,000 an ounce as a prolonged U.S. government shutdown and expectations of further U.S. interest rate cuts drove demand for the safe-haven asset. MKTS/GLOB